Renault is considering building a mass-market electric vehicle in India, as per reports, as part of a renew push into a market where EV adoption is expect to grow quickly from a small base. The study by Renault underscores how the French automaker is pushing ahead with electrification plans even as it extends unresolve negotiations with its partner Nissan Motor about investing in an EV unit it plans to carve out from its other operations.
It also points to the shifting perception of the auto market in India, which post the fastest growth of any major market in 2022.
EVs were on track to be less than 1% of car sales in 2022 but the government has set a target of 30% by 2030 and has had recent success in attracting suppliers for international automakers, with a range of subsidies.
Renault is studying launching a made-in-India electric version of its Kwid hatchback.
The review will assess potential demand, pricing and the ability to build the EV with local components, said one of the people, adding that any launch would be late in 2024.
The move is part of a broader plan by Renault to rekindle sales in India where the carmaker remains profitable despite selling fewer cars in 2022 than a year earlier.
Renault India decline to comment on product plans but said the company has a “strong focus on electrification globally” as part of the strategy outline by CEO Luca de Meo and that “India is one of the key markets” for the group.
India is set to become the world’s third-largest market for passenger and other light vehicles, displacing Japan, according to a forecast by S&P Global Mobility.
Industry-wide sales grew an estimated 23% to 4.4 million vehicles in 2022.
Renault had been hoping to reach with Nissan in December on the terms of a carve-out for its EV unit, but discussions have slow over concerns by the Japanese carmaker on a range of issues, including protection for its intellectual property.
In India, domestic carmaker Tata Motors, which dominates electric car sales, as well as foreign players like Stellantis, Hyundai Motor and SAIC’s MG Motor are lining up EV launches.
Renault already produces a version of the Kwid EV in China which is sold in that market as the City K-ZE and export to France as the Dacia Spring.
To qualify for incentives in India, Renault would have to build the car at its alliance plant in southern India and source components locally.
The India plant is majority own by Nissan.
Renault currently produces the Kwid hatchback, Kiger SUV and 7-seater Triber in India.
Its sales fell 9% to around 87,000 units in 2022 and its market share dip to just over 2%.
Renault also plans to invest in refurbishing and upgrading some of its major dealerships in big cities.
The Renault said it has 500 sales outlets in India.
