Shulou(Shulou.com)11/24 Report--

January 9 news, according to foreign media quoted insiders, Renault is considering the Indian market in the production of a low-cost electric car for the local mass market. This is also an important move for Renault to re-enter the Indian market.

Renault's plan highlights the company's continued efforts to electrify its products. At present, Renault and partner Nissan are still in negotiations to invest in restructuring the independent electric vehicle division.

Renault's plan also shows that carmakers' views on the Indian car market are changing. Electric vehicles accounted for less than 1 per cent of total car sales in India in 2022, but India has set a target of 30 per cent of electric vehicle sales by 2030 and has attracted more car companies through a series of subsidies. The use of electric vehicles in India is expected to grow rapidly.

Renault is working on building an electric version of the Kwid hatchback locally in India, according to people familiar with the matter.

One of the people familiar with ▲ Renault Kwid said the study would assess potential demand for an electric version of the Kwid hatchback, pricing and the ability to build electric cars using local Indian components. Renault will launch the product later in 2024, people familiar with the matter added.

Although Renault sold fewer cars in India last year than the year before, it is still profitable. People familiar with the matter said the move was part of Renault's plan to revive the Indian market.

Renault declined to comment on the product plan but said it was "highly concerned about global electrification" as part of a strategy championed by Luca de Meo, chief executive, and "India is also one of Renault's key markets".

India will overtake Japan as the world's third-largest market for passenger cars and other light vehicles, according to automotive industry analyst Sipp Global Mobility. Sales in India's auto industry are estimated to grow 23 per cent to 4.4 million vehicles in 2022.

Renault had hoped to reach an agreement with Nissan in December to restructure its electric car business, but progress has been slow because of Nissan's concerns about a range of issues such as intellectual property protection.

"India will play an important role in future Renault-Nissan projects, but local plans will not be finalized until a global cooperation restructuring agreement is reached," a source said. "

In India, electric car sales are dominated by local carmaker Tata Motors. Companies such as Stellantis, Hyundai and SAIC are launching electric vehicles one after another.

Renault has produced and sold an electric car called Renault Eno in China and exported it to the French market under the name Dacia Spring. According to statistics, the Spring is the second largest selling electric car in France in 2022, with a range of 230km and a starting price of 20800 euros ($22180) before the subsidy.

To receive Indian subsidies, Renault would have to produce an electric version of the Kwid hatchback at a joint plant in southern India and procure parts locally, according to people familiar with the matter. Nissan currently owns a majority stake in Indian factories.

Renault currently produces Kwid hatchbacks, Kiger SUV and seven-seater MPV Triber in India. Renault's sales in the local Indian market fell 9 per cent to 87000 vehicles in 2022, with its market share falling to just over 2 per cent.

Renault also plans to renovate and upgrade some of its major distribution outlets in major Indian cities as part of restarting its operations in India, according to people familiar with the matter. The company has said it has 50 local sales outlets in India.

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