by Aditi Shah and Gilles Guillaume
(Reuters) – Renault has begun a feasibility study to launch and produce an electric version of its small Kwid in India, two sources familiar with the matter told Reuters, as the diamond group intends to go back on the offensive in this market car, the most dynamic in the world.
The study carried out by Renault shows that the French car manufacturer is continuing with its electric vehicle projects, even if negotiations with its partner Nissan Motor concerning the investment in an electric vehicle unit which it plans to separate from its other activities do not have not succeeded.
It also testifies to the changing perception of the car market in India, which recorded the fastest growth of all major markets in 2022. Electric vehicles were on track to account for less than 1% of car sales in India. last year, but the government set a target of 30% by 2030 and recently succeeded in attracting suppliers from international automakers, including Toyota, through a series of subsidies.
Renault is exploring the possibility of launching an electric version of its Indian-made small Kwid, the 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 a wider plan by Renault to boost sales in a country where the automaker remains profitable, despite a drop in sales in 2022, the source said.
Renault India declined to comment on product plans but said the group was focusing heavily on electrification globally, as part of the strategy set out by chief executive Luca de Meo, with India being the one of the group’s key markets.
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 increased by 23% to 4.4 million vehicles in 2022.
“India will play an important role in Renault-Nissan’s future plans, but local plans will not be finalized until a comprehensive agreement is reached on a restructuring of the alliance,” one of the sources said.
To qualify for the incentives in India, Renault would need to build the car at its factory 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 restart, Renault also plans to invest in refurbishing and upgrading some of its key dealerships in major cities, the source said. The company said it has 500 outlets in India.
(Aditi Shah and Gilles Guillaume report, French version Augustin Turpin, edited by Blandine Hénault)