Renault Reinforces Commitment to Indian Vehicle Manufacturing
Renault Expands Operations in India with New CEO and Design Center
Renault Group, a leading automobile manufacturer, is set to significantly increase its presence in India with a series of strategic moves. The French automaker has taken full ownership of its Chennai manufacturing plant, establishing India as a key pillar of its international growth.
The Chennai plant, a strategic manufacturing hub for Renault's global operations, has produced over 2.8 million vehicles since its launch in 2010, including 4.6 million engines and gearboxes. This plant will now support the production of Renault's new flexible, multi-energy modular platform, hosting the production of the brand's future models.
To further bolster its Indian operations, Renault is establishing a design center in Chennai, making it Renault's largest design center outside of France. The first of four planned Indian-built models by Renault is the new facelifted Renault Triber, a 7-seat people carrier.
Stephane Deblaise has been appointed as the CEO of Renault Group in India, effective September 1, 2023. Deblaise, who joined Renault in 2000 as an advanced process engineer, brings extensive experience from engineering roles at several foreign strategic manufacturing hubs, including in Latin America and China. His role includes defining and executing the group’s strategy in India, overseeing all Renault Group operations reported through Indian entities, and accelerating growth.
Renault aims to expand its exports to other markets, including Africa and Asia, with the new CEO's appointment. The company is also investing €700 million aimed at India-specific electric vehicles (EVs) and platform modernization, aligning with India’s growing EV market and carbon-neutral goals by 2045.
The Chennai plant's production capacity will be used for the production of Renault's future models, with an annual 400,000-unit production target and €150 million in annual cost savings via supply chain consolidation. The plant has already exported more than 1.2 million vehicles to over 100 countries.
Renault continues its collaboration with Nissan under a contract manufacturing arrangement where Nissan vehicles are produced at the Chennai plant. The company also plans to strengthen engineering capabilities through the India-based design and R&D center, jointly owned with Nissan, to adapt vehicles for India and export markets.
The ultimate goal is to increase Renault's market share in India beyond current levels (below 1%), with targets around 5%. This will be achieved through product launches and better utilization of manufacturing capacity.
In summary, Renault's India expansion strategy is a comprehensive integration of manufacturing, product development, investment in EV technologies, leadership under Stephane Deblaise, and a major product rollout. This positions India as a crucial hub in its international growth and innovation roadmap.
- Renault's new design center in Chennai signifies a significant move in the automotive industry, marking a key step in the manufacturer's global expansion.
- The Chennai manufacturing hub, now a cornerstone of Renault's worldwide operations, has been instrumental in producing over 2.8 million vehicles and 4.6 million engines and gearboxes.
- As part of its strategy in India, Renault aims to produce its future models using the plant's increased production capacity, targeting an annual production of 400,000 units.
- With the appointment of Stephane Deblaise as the CEO, Renault is poised to boost its finance, transportation, and lifestyle sectors through exports, electric vehicle investments, and growth acceleration in India.
