
Renault's global design chief says innovation is name of the game
HighlightsChinese automakers are leading in EV design and tech, forcing global players like Renault to innovate. Car design is evolving from surface-level styling to intelligent, holistic user experiences. Renault sees India not just as a market, but also a hub for tech talent. Electric architecture is liberating automotive design.
Mumbai:
As Chief Design Officer of the
Renault Group
, Laurens
van den Acker
knows only too well that the global automobile arena is in a completely different place today.
Today, it is the Chinese who are literally calling the shots in the electric vehicle space and setting new standards in design which have had the rest of the world flummoxed. Beyond this, customer tastes and preferences are also changing rapidly which means designers like van den Acker have to factor in these new realities.
'The world is changing very fast and there is an increased need for innovation because we are finding out — if we are looking at our competitors — that they are very advanced in terms of technology. This means design needs to mature from just doing the styling and making things beautiful,' he told ET Auto during a recent visit to India for the inauguration of the
Renault
Design Centre in Chennai.
We see, for instance, that the average age of a car buyer in Europe is 54 while it is 35 in China. I do not know what the average age in India is though it is definitely lowerLaurens van den Acker
Innovative ideas
While these still remained top priorities, van den Acker was quick to add that it was equally important for companies like Renault to become very innovative on their own while coming up with new concepts, ideas and experiences.
As he explained, carmakers were now switching from exterior/ interior design to offering a complete customer experience. 'What happens when the car has a brain? What happens if the car becomes intelligent? What happens if the car starts to anticipate your needs? So for all this, this is a completely new design challenge,' said van den Acker.
This reality extends to countries like India too where there are a lot of UX UI (user experience, user interface) developers as well as software developers and coders. Hence, this is a good place 'for us to connect to this community as well'.
Given these new trends, it has become absolutely imperative to look for new ideas, innovations, disciplines and skills as part of the effort to make the experience of a car even more exciting than ever. The age demographics of buyers is also completely diverse across the world which makes the task of design even more challenging.
Also Read: Renault launches new design centre in Chennai, its largest outside France
Young vs old buyers
'We see, for instance, that the average age of a car buyer in Europe is 54 while it is 35 in China. I do not know what the average age in India is though it is definitely lower,' said van den Acker. Given that two-thirds of the subcontinent is less than 30 years old, it will be logical to assume that a large chunk of contemporary car buyers in this part of the world are in the 25-35 age group.
From Renault's point of view, this means that there is a different mindset and attitude towards the vehicle coupled with different expectations worldwide. 'And like it or not, in Europe, we live in an ageing society, so we need to make sure that we do not lose our connection with the future,' reiterated van den Acker.
Also Read:
Renault aims for more agility in India, reaffirms Nissan's role
Right now, it is China that is constantly hitting the headlines thanks to the massive strides it has made in EVs where companies like BYD are literally surging ahead of the rest. While admitting that the Chinese car industry was formidable and akin to 'facing an army', this did not mean that everything was lost.
'On the contrary, it means we have to pick up our game and become better. We have to leverage our — how can I say — our assets which are diversity, inclusion and authenticity,' said van den Acker.
So in my view, it is the most sophisticated level of design. You find all aspects (of design) in the car and therefore it is exciting to be in there, even if it is scary once in a whileLaurens van den Acker
Renault icons
From the French carmaker's point of view, its portfolio has icons like the Renault 4 and 5 as well as Twingo which represent brands that 'speak to a lot to the hearts of people in Europe'. Likewise, it has had some head turners in India like the Duster and Kwid. 'So we need to play these cards and give them (Chinese competition) something to fight for,' he continued.
The Renault design chief also agreed with the view of some industry experts that it would not make sense to go overboard on design with funky and radical concepts.
'Well yes, it depends. You do not do this with every car, but if you have a lineup of 10 vehicles, you can afford to take risks with one or two cars. To be really competitive in today's market, your cars have to be really, really good. And they have to tick all the boxes and sometimes you need to make waves to get further,' he explained.
The hiring process across the automobile industry has also seen a huge change over the years with companies now seeking some unique skills in design. There are some who have also roped in youngsters from the gaming industry keeping in mind that new cars need to be an extension of people's personalities and even double up as a comfortable living room on wheels.
Also Read: Renault's new launches lift first quarter sales
Increased complexity
'Yes, we are seeing this trend too and you need people who know about screens, animations, gaming, sounds, motion and the like. The complexity has increased, but it has also become much more interesting,' said van den Acker.
He added that as far as he was concerned, car design was the 'highest level of design' that one could achieve. 'It is the closest to a human being. The car has a brain and a character. The car has a front face and eyes,' he elaborated.
As van den Acker put it, 'We even describe the vehicle in terms of human assets. So in my view, it is the most sophisticated level of design. You find all aspects (of design) in the car and therefore it is exciting to be in there, even if it is scary once in a while.'
The electric era has him excited because the Renault team has been able to produce some vehicles that were not possible with combustion engines. For instance, even in R5, it was possible to do a small car with big wheels in the corners because an electronic architecture has a smaller engine.
Being more compact, 'you can have bigger wheels' which can still turn and give a good turning radius. 'It gives us certain things that we could only dream of a few years ago. So, like I said, it also gives us also some challenges. But, hey, that's life, you know!' signed off van den Acker.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Mint
an hour ago
- Mint
Cost pinch is coming for cement companies in Q1
The early onset of the monsoon plays spoilsport for cement demand and prices. Also, a temporary rise in power and fuel costs (P&F) is on the cards for cement makers in the June quarter (Q1FY26). The cost of imported petroleum coke (pet coke) saw a sudden spike in March. A surge in demand by Chinese companies in anticipation of higher tariffs led to pre-booking, which translated into higher procurement costs. P&F costs are estimated at 30-35% of the cement sector's total production cost. Petcoke, which is derived from oil refining, is a key input material for cement manufacturers. Typically, cement companies import petcoke and stock fuel inventories for two-three months. So, the impact on profitability due to movement in fuel costs comes with a lag. Although spot international petcoke cost has now cooled off to $104/tonne from around $122/tonne in March, cement companies with a relatively higher reliance on this fuel could feel the heat in Q1FY26. Also read: Meta in talks to invest nearly $10 billion in artificial intelligence startup Scale AI 'On average, this should translate into a P&F cost/tonne increase of ₹75 for Indian cement companies during Q1FY26 on a sequential basis. North-focused cement makers Shree Cement Ltd and JK Cement could be most hurt," said Kunal Shah, analyst at DAM Capital. The fuel mix of Shree Cement and JK Cement comprises 95% and 70% petcoke, respectively. On the other hand, UltraTech Cement Ltd should be least affected given material exposure to imported coal, where cost trends were favourable in Q4FY25, he added. (See chart 1) To counter fuel cost volatility and reduce carbon footprint, cement companies have been enhancing their cost efficiency by investing in green energy and waste heat recovery systems. For instance, Ambuja eyes cost savings of ₹500-550/tonne by FY28 and has achieved around ₹150-170/tonne in FY25. Further savings of ₹100/tonne is likely in FY26. Dalmia Bharat Ltd expects to meet half of its ₹150–200/tonne cost savings target in FY26. These are steps in the right direction, but they would yield outcomes gradually. Cement prices However, in the current backdrop, if cement prices sustain at higher levels, companies could get some cushion from this cost bump. In June so far, cement prices in the trade segment at pan-India level are up by ₹2/bag month-on-month to ₹358/bag, according to Nomura Global Markets Research. One cement bag weighs 50kg. This is largely led by a ₹19/bag hike in the south, although cement prices are marginally down by ₹2-5/bag in other regions. In Q1FY26 so far, the average pan-India trade segment cement price is up ₹12/bag sequentially to ₹356/bag, the Nomura report said on 4 June. The brokerage cautions that pricing indiscipline amid industry consolidation will likely keep trade prices range-bound. Also read: Policy U-turn? New govt notice hints at easier local sourcing rules for telecom equipment makers Dealer channel checks by brokerages show that cement demand has been in the low single digits in Q1FY26 so far. Q1 will be followed by a seasonally weak Q2 as construction activities tend to be dull during the monsoon season. So, depending upon the pace of demand recovery, any meaningful improvement in cement prices could happen in H2FY26. Large cement stocks have given mixed returns in 2025 so far. On a one-year forward EV/Ebitda, the sector is trading at a valuation multiple of 20.6x, which is around a 25% premium to the long-term average, according to Motilal Oswal Financial Services. The sector's valuation declined around 30% by March 2025 from its peak in June/July 2024 due to weaker-than-estimated demand growth, continuing pricing pressure, and an increase in fuel prices, it said in a report. For rich valuations to justify realisations, they have to meaningfully improve. Key takeaways Also read: Not Ozempic, in India THIS weigh-loss and diabetes drug from Eli Lilly sees sales jump 60% — what is it?

Mint
2 hours ago
- Mint
Centre to introduce minimum import price on pharmaceutical raw materials to curb cheap Chinese imports
New Delhi: India plans to introduce a minimum import price (MIP) for select pharmaceutical raw materials in a move to shield its domestic industry from a flood of cheap Chinese imports, two people directly involved in the process said, a step that will also shore up India's status as the world's largest supplier of generic drugs. India accounts for about 20% of the global supply of generic drugs and manufactures about 60,000 generic brands, across 60 categories. The plan comes against the backdrop of the Centre's move to bulk up its Production Linked incentive (PLI) scheme for generic drugs by including more molecules used in manufacturing key starting materials (KSMs), drug intermediates, and Active Pharmaceutical Ingredients (APIs). KSMs and intermediates are chemical compounds used to synthesize APIs, which are the main components of a drug. 'The government is working on a plan to impose a minimum import price on all PLI based pharmaceutical products. The plan is to protect the domestic industry so that they are able to continue to do the business and to make India self-reliant," said one of the two people mentioned above. The measure seeks to build on India's recent success with domestic production of critical antibiotics such as Penicillin G. The API industry is a crucial segment of the pharmaceutical sector, accounting for about 35% of the market. However, India is dependent on imports for 80% of its bulk drug requirement. Bolstering self reliance The move also aims to bolster India's goal of self-reliance in the pharmaceutical sector. The heavy reliance on China, the world's largest producer and exporter of APIs, creates significant risks for India's medicine supply chain. In 2021, the government launched the ₹15,000 crore PLI scheme for the pharmaceuticals sector. There are about 500 API manufacturers in India, which account for about 8% of the global API industry. In addition, the production of APIs for essential medicines is also promoted through a dedicated PLI scheme for bulk drugs, KSMs and APIs. The government is seeking new applications as the previous iteration of the PLI scheme failed to meet the expectations due to dumping of cheap commodities from China. Also read | India curbs exports of 13 key pharma ingredients These schemes are aimed at protecting and encouraging domestic ingredient manufacturing which is seen as a critical step in securing the future growth and stability of India's pharma sector. According to the second person, the plan is a direct response to appeals from the domestic API industry, which has struggled to compete with the low prices of Chinese products. 'Actually, industry needs protection like some anti-dumping measures and MIP to make India self-reliant," the second person said, referring to a practice where a country 'dumps' its exports in other countries at prices that are less that what it costs to make these goods. Exports marginally higher As per commerce ministry data, India recorded a modest trade surplus in bulk drugs and intermediates in FY25, with exports totalling $4.90 billion and imports at $4.64 billion. In FY24, exports stood at $4.79 billion, slightly ahead of imports worth $4.56 billion, again resulting in a surplus. Similarly, in FY23, exports were $4.77 billion compared to imports of $4.51 billion, continuing the trend of a positive trade balance in this segment. The Indian Drugs Manufacturers' Association (IDMA) called for a cautious and data-driven approach to the proposal for imposing minimum import prices on select APIs and KSMs. The industry body has warned the government against a blanket application of the trade measure. 'We believe that a data-backed, well-studied and balanced approach should be considered," said Viranchi Shah, national spokesperson for IDMA. While the move is intended to discourage cheap imports and support the domestic pharma industry, Shah cautioned that India's strong position in finished formulation exports must not be compromised. Also read | India seeks financial details of pharmaceutical marketing practices 'The minimum import price should not come as a blanket strategy across the board, considering that India also has a very strong formulation industry," he said. 'Our industry has to remain competitive both domestically and globally." IDMA reiterated its support to the government's self-reliance push under the 'Atma-Nirbhar Bharat" campaign but urged policy planners to ensure that trade interventions like MIP do not end up hampering Indian exports by making them more costly. Queries sent to the spokespersons of India's commerce ministry, and department of pharmaceuticals on Friday and the Embassy of China in New Delhi on Saturday remained unanswered till the press time. China dependent Ajay Srivastava, co-founder of the Global Trade Research Initiative (GTRI), a policy think tank, said India's chemicals and pharmaceuticals sector—which plays a crucial role in healthcare, agriculture, and industry—is becoming heavily dependent on imports from China. 'This growing reliance not only exposes India to supply chain vulnerabilities but also raises significant strategic concerns, especially in the current global climate where geopolitical tensions and trade disruptions are increasingly common. Strengthening domestic production is thus not just an economic priority but a national security imperative," he said. A GTRI report from April 2024 states that India's imports of chemicals and pharmaceuticals reached $54.8 billion in FY2024. Between 2007 and 2022, China's share in these imports rose sharply from 18% to 29%, with imports from China increasing nearly fourfold—from $4.4 billion to $17.4 billion. Also read | Bitter pill for Indian pharma as Trump tariffs could hurt exports by $2.25 bn Although imports from other countries has also ballooned, the heavy dependence on China remains a major strategic concern. In 2022, India's chemical and pharmaceutical imports totaled $76.94 billion, with China accounting for 26.8%, followed by Saudi Arabia, the US, Japan, and Russia. There has been a notable increase in antibiotic imports from $551.2 million in 2007-10 to $1.27 billion in 2020-22, an increase of 130.7%. Here too, China's market share climbed to 81.7%, underscoring a high dependency on Chinese pharmaceutical products essential for addressing widespread public health needs in India, it said. Instrument of control A minimum import price is an instrument used by countries to control surplus imports. As a case in point, India has used MIPs to curb the import of steel and agricultural products like onions and pulses. By filtering out extremely low-cost imports, MIP also helps maintain quality standards, ensuring that only manufacturers capable of meeting cost-based compliance and quality norms supply APIs to the Indian market. 'While such a measure could lead to a short-term increase in input costs for drug makers dependent on Chinese supplies, it is seen as a necessary step for strengthening the domestic pharmaceutical ecosystem and reducing strategic vulnerabilities," said Abhash Kumar, a trade economist and assistant professor of economics at Delhi University. Also read | India eyes Asean to boost pharma exports An MIP is not outright banned under WTO rules, but it can face challenges if used unfairly or for extended periods. The WTO also allows rules-based instruments like tariffs or anti-dumping duties backed by formal investigations. India imposed an MIP on steel in 2016, but later replaced it with WTO-compliant remedies like safeguard duties.


Time of India
2 hours ago
- Time of India
Auto companies seek govt help for magnet imports
NEW DELHI: The automobile industry has sought govt support in expediting approvals from the Chinese govt for importing rare earth magnets used in various applications, including passenger cars. As per sources, various domestic suppliers have already sought approval from the Chinese govt through their local vendors in China. However, no approvals have been granted so far, sources said. China controls over 90% of global processing capacity for the magnets, used across multiple sectors including automobiles, home appliances and clean energy. The Chinese govt has put restrictions, with effect from April 4, mandating special export licences for seven rare earth elements. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now