French automaker Renault is betting big on India, expecting the country to emerge as one of its top global markets over the next few years, driven by a fresh product push led by the new-generation Duster SUV and a stronger localisation strategy.
Francisco Hidalgo, Vice President (Sales & Marketing), Renault India, said the company sees India potentially ranking among its top five global markets—and possibly even the top three—within the next three to four years.
“India has the potential, given market growth and our product plan, to become a top-five market easily, hopefully even a top-three market for Renault globally,” Hidalgo said. He added that the company is targeting a market share of 3–5% by 2030, a significant jump from its current share of under 1%.
Once a strong player in India
Renault was once a strong player in India, buoyed by the success of models like the Kwid and the earlier-generation Duster. By FY17, it had captured around 4.5% market share, with sales exceeding 130,000 units, and was targeting the 5% mark. However, volumes have since declined significantly, with sales falling below 40,000 units by FY25.
The company is now attempting a turnaround with the launch of the third-generation Duster, priced at an introductory ₹10.29 lakh (ex-showroom). The SUV marks the return of a popular nameplate that was discontinued in 2022 and is central to Renault’s revival strategy in the country.
Plans to ramp up production at Chennai facility
As part of this strategy, Renault plans to ramp up production at its Chennai facility, which has an installed capacity of nearly 500,000 units annually. Current output is around 200,000 units, leaving ample room to scale up both domestic sales and exports.
A key pillar of Renault’s India roadmap is its focus on hybrid technology. Hidalgo described hybrids as a “natural replacement” for diesel, particularly in urban markets, signalling a shift away from diesel engines. The company has already confirmed that a hybrid version of the Duster is slated for launch around Diwali this year.
Renault is also exploring innovation in alternative fuels. Hidalgo hinted at the possibility of introducing turbocharged CNG powertrains, an unconventional move in a segment dominated by naturally aspirated engines. “I don’t see why CNG would have to mean naturally aspirated… there can be turbo CNG,” he said, while stopping short of confirming product timelines.
Alongside new products, localisation remains a key focus area. Renault has already achieved over 90% localisation in models such as the Kwid, Triber, and Kiger, and aims to reach similar levels for the Duster. Higher localisation is expected to help the company mitigate risks from currency fluctuations and global uncertainties.
While geopolitical tensions, including conflicts in regions such as Iran, have not impacted Renault’s supply chain so far, Hidalgo acknowledged that such developments could affect customer sentiment and costs, especially if the rupee weakens against the euro.
Despite pressure in the small car segment, Renault said it has no plans to discontinue the Kwid, citing steady demand. The company also indicated strong initial interest in the new Duster, with deliveries set to begin by mid-April, although it declined to disclose booking numbers.