Renault Plans to Expand SUV Lineup in India to Boost Production Capacity

According to Reuters, Venkatram Mamillapalle, the managing director of Renault India, stated that Renault plans to add more SUVs to its product line in India to enhance the plant's capacity utilization and regain market share in the world's third-largest automotive market. The factory, which is wholly owned by Renault and located in southern India, has an annual production capacity of approximately 500,000 units, but its current utilization rate is only about 50%. Mamillapalle expressed hopes for growth in the Indian market, as well as new export markets beyond Southeast Asia and South Africa, to help increase the plant's capacity utilization to '80% to 100%'. He also mentioned that Renault plans to invest $600 million to acquire shares in the joint venture from its alliance partner Nissan, after which it will focus on boosting domestic sales and export scale from India. In an interview with Reuters, Mamillapalle said, 'We will actively promote the launch of new products.' He revealed that Renault will introduce compact and mid-size SUVs in India. Currently, the company sells three models in India: the small car Kwid, the small SUV Kiger, and the seven-seater small car Triber, with Triber being their best-selling model in India. Notably, on July 23, Renault launched a revamped version of the Triber, marking the company's first new car release in India in over four years, and the first of four new models planned for the Indian market over the next two years. Industry data shows that due to a lack of new model launches and a product line skewed towards the rapidly shrinking Indian small car market, Renault's market share in India has dropped from over 3% five years ago to less than 1%. In the previous fiscal year, SUVs and three-row family cars accounted for about 65% of the 4.3 million cars sold in India, while small cars accounted for the remaining market share, significantly declining from over 60% five years ago. Although the Indian market accounts for less than 2% of Renault's global sales, it is one of five cost-competitive international hubs that the company has high hopes for, aiming to enhance sales outside its European home market.