Renault Eyes Indian Comeback with SUVs, USD 600M Investment Boost

In a significant endeavor to regain its position in India, Renault will invest USD 600 million to enhance production, introduce new SUVs, and increase exports out of its Chennai facility.

Through this investment, Renault has taken full control of its Chennai manufacturing plant, which had operated with Nissan as a joint facility; consolidating control over the manufacturing facility will create a streamlined decision-making process and allow for an increased flexibility of operations. 

As the Indian auto market becomes increasingly dominated by SUVs, Renault will launch four new models over the next two years, including new compact and mid-size SUVs and a refreshed version of the Triber MPV. This shift marks a departure from Renault's previous attempts to build its market share with entry-level vehicles like the Kwid and attempts to address the time-shifting consumer demand.

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The Chennai facility, which is currently operating at half of its capacity, has a maximum capacity of about 500,000 vehicles a year. As Renault hopes to increase its capacity utilization from 50 percent to 100 percent, it will continue export operations to right-hand-drive markets and, in time, left-hand-drive markets.

Renault's market share in India has fallen below one percent but its goal now is to take a five percent share of the Indian market by 2030 with a solid local product pipeline and increasing export levels. A newly established design center in Chennai is expected to play a crucial role in shaping India-specific vehicles, tailored to customer needs and price sensitivity.

This aggressive strategy signals Renault’s renewed commitment to one of the world’s fastest-growing automotive markets, positioning India not just as a sales hub but also a key global manufacturing and export base.