French automaker Renault announced plans to establish a domestic electric vehicle production in India that would cater to local customers’ demand for affordable models.
EV-a2z previously reported Renault India’s plan to launch its first EV in the market by 2025.
Strategy
Renault reportedly aims to establish a reliable supply chain network in India to ensure the affordability of its planned electric cars, according to Renault India CEO and Managing Director Venkatram Mamillapalle.
In hindsight, the automaker previously disclosed plans to launch a low-cost EV in the domestic market. In effect, many people speculated about the possible arrival of the Kwid EV in the country.
Remarkably, Renault prioritizes making its offerings for the Indian EV market affordable as it “does not want to burden the customer with huge costs.” Therefore, it aims to enter the mid- to upper-middle-class mass market.
“We need a lot of local suppliers for EVs because we want to go for a local supplier-based system. So, the cost of acquisition (for a buyer) becomes competitive.”
Venkatram Mamillapalle, Renault India CEO and Managing Director
However, the executive indicated Renault’s plan to prioritize SUV production before electric-powered models. The company still intends to see how the country’s EV industry will evolve in the coming months.
“We are going to focus on SUVs, followed by EVs. Maybe, we are a little shy because of the (EV) ecosystem has not completely matured in India.”
Venkatram Mamillapalle, Renault India CEO and Managing Director
In hindsight, Renault and Nissan previously announced plans to invest Rs 5,300 crore in the Indian EV market. They aim to launch a new Spring Electric-based model in the country, which is already selling in Europe.
Local reports stated that Renault India considers the Spring’s electric avatar for the domestic market. CEO Mamillapalle apparently confirmed that the company will produce this model at its planned Indian factory.
See Also:
- Tesla and Indian government negotiations continue to progress
- Renault India to launch its maiden EV by 2025
- Indian EV market advances with 700,000+ units sold in H1 2023
- India’s EV revolution powers ahead with over 700,000 units sold in the H1 2023
- Nissan Ariya spotted testing in Maharashtra: One of two Nissan EVs expected to debut in India
Renault’s intensified expansion strategy in India is exciting as it may pose a major competition against Tesla. As EV-a2z previously reported, the Musk-led company and Indian officials’ negotiations seem progressive.
Their imminent arrival in the domestic market will undoubtedly encourage more customers to switch to more sustainable vehicles.
