RENAULT Renault's study shows that the French carmaker is pursuing its electric vehicle projects, even though negotiations with its partner Nissan Motor concerning investment in an electric vehicle unit that it plans to separate from its other activities have not been successful.
It also testifies to the changing perception of the automotive market in India, which recorded the fastest growth of any major market in 2022. Electric vehicles were on course to account for less than 1% of car sales last year, but the government has set a target of 30% by 2030 and has recently succeeded in attracting suppliers to international carmakers, including Toyota, through a series of subsidies.
Renault is studying the possibility of launching an electric version of its small Kwid made in India, sources told Reuters.
The review will assess potential demand, price and the ability to build the electric vehicle with local components, one of the sources said, adding that a possible launch would take place in late 2024.
The move is part of Renault's wider plan to revive sales in a country where the carmaker remains profitable, despite a sales downturn in 2022, the source said.
Renault India declined to comment on product plans, but said the group was focusing strongly on electrification globally, as part of the strategy outlined by CEO Luca de Meo, with India being one of the key markets for the group.
According to S&P Global Mobility forecasts, India is set to become the world's third-largest market for passenger cars and other light vehicles, overtaking Japan. Industry-wide sales are estimated to have risen by 23% to 4.4 million vehicles by 2022.
"India will play an important role in Renault-Nissan's future plans, but local plans will not be finalized until a global agreement on a restructuring of the alliance is reached," said one of the sources.
To benefit from incentives in India, Renault would have to build the car at its plant in southern India and source components locally, the first source said. The Indian plant is majority-owned by Nissan.
No one at Nissan was immediately available for comment.
As part of India's revival, Renault also plans to invest in renovating and upgrading some of its main dealerships in major cities, the source said. The company said it had 500 sales outlets in India. (Reported by Aditi Shah and Gilles Guillaume, Augustin Turpin, edited by Blandine Hénault)
