PARIS — Renault is contemplating constructing a mass-market electrical car in India, two individuals with data of the continued overview advised Reuters, as a part of a renewed push right into a market the place EV adoption is predicted to develop rapidly from a small base.
The research by Renault underscores how the French automaker is pushing forward with electrification plans even because it extends unresolved negotiations with its associate Nissan about investing in an EV unit it plans to carve out from its different operations.
It additionally factors to the shifting notion of the auto market in India, which posted the quickest development of any main market in 2022.
EVs had been on monitor to be lower than 1 p.c of automotive gross sales final yr however the authorities has set a goal of 30 p.c by 2030 and has had current success in attracting suppliers for worldwide automakers, with a spread of subsidies.
Renault is learning launching a made-in-India electrical model of its Kwid hatchback, the individuals advised Reuters.
The overview will assess potential demand, pricing and the flexibility to construct the EV with native parts, mentioned one of many individuals, including that any launch can be late in 2024.
The transfer is a part of a broader plan by Renault to rekindle gross sales in a rustic the place the automaker stays worthwhile regardless of promoting fewer automobiles in 2022 than a yr earlier, the individual mentioned.
Renault India declined to touch upon product plans however mentioned the corporate has a “strong focus on electrification globally” as a part of the technique outlined by CEO Luca de Meo and that “India is one of the key markets” for the group.
India is about to change into the world’s third-largest marketplace for passenger and different gentle autos, displacing Japan, in response to a forecast by S&P Global Mobility.
Industry-wide gross sales grew an estimated 23 p.c to 4.4 million autos in 2022.
That is a distinction to the outlook for the U.S., the place the market is predicted to stay beneath 2019 ranges subsequent yr, and China, the place demand is weakening.
Renault had been hoping to achieve with Nissan in December on the phrases of a carve-out for its EV unit, however discussions have been slowed over considerations by the Japanese automaker on a spread of points, together with safety for its mental property.
“India will play an important role in future projects of Renault-Nissan but local plans will not be finalized before a global deal on a restructuring of the alliance is reached,” mentioned one of many sources.
In India, home automaker Tata Motors, which dominates electrical automotive gross sales, in addition to international gamers like Stellantis, Hyundai Motor and SAIC’s MG Motor are lining up EV launches.
Renault already produces a model of the Kwid EV in China which is offered in that market because the City Ok-ZE and exported to France because the Dacia Spring.
The Spring, the second most offered EV in France in 2022, has a spread of 230 km and a beginning worth of 20,800 euros ($21,869) earlier than authorities incentives.
To qualify for incentives in India, Renault must construct the automotive at its alliance plant in southern India and supply parts regionally, the primary individual mentioned. The India plant is majority owned by Nissan.
Nissan declined to remark.
Renault at present produces the Kwid hatchback, Kiger SUV and seven-seater Triber in India. Its gross sales fell 9 p.c to round 87,000 models in 2022 and its market share dipped to simply over 2 p.c.
As part of the India reboot, Renault additionally plans to put money into refurbishing and upgrading a few of its main dealerships in huge cities, the individual mentioned.
The firm mentioned it has 500 gross sales retailers in India.