Latest news with #Mamillapalle
Time of India
25-04-2025
- Automotive
- Time of India
Renault aims for more agility in India, reaffirms Nissan's role
HighlightsRenault takes full control of Chennai plant by acquiring Nissan's 51% stake, aiming for faster decisions and 50% capacity increase by 2030. Nissan remains a product partner despite the ownership change; operations, workforce, and alliance activities continue unchanged. Five new models coming in 2 years, including B+ and C-segment SUVs like Duster and Bigster, with a target to regain 3% market share by 2028. Focus on boosting domestic demand, with Renault pushing for higher disposable incomes, echoing Suzuki's view on affordability challenges for over 1 billion Indians. Renault India is confident that there will be greater agility in its India plant operations following the decision to buy out Nissan Motor 's 51% stake in the manufacturing alliance. 'This acquisition is basically about having one chef in the kitchen and making sure we bring more efficiency into the whole ecosystem. When you have one master, you can decide to bring what products you want and when,' Venkatram Mamillapalle , Country CEO & MD, Renault India, told ET Auto. This acquisition is basically about having one chef in the kitchen and making sure we bring more efficiency into the whole ecosystem. When you have one master, you can decide to bring what products you want and Mamillapalle At present, capacity utilisation in the Chennai plant is 48% and with Renault now in the driver's seat, this situation will 'improve faster'. As he put it, a solo player was better than having two partners making decisions and then awaiting approvals from finance, legal, HR etc while the clock ticked away merrily . 'It is akin to a whirlpool where things are constantly spinning but with one chef now in the kitchen, there will be faster decision making,' said Mamillapalle. Renault India is now keen on a 'quick increase' in plant capacity by 50% before getting into complete utilisation by 2030. Nissan role vital The MD was quick to clarify that all this would be done with both Renault and Nissan products even though there was a change in the equity alliance structure. Nissan had originally started off with 70% in the manufacturing JV before reducing it to 51% and has now sold this stake to Renault which will hold 100% in the plant operations. 'We will continue to make Nissan and Renault vehicles. Hopefully, we are in the right direction and I have no doubts that the alliance partner will remain. Renault Nissan Technology and Business Centre India will also continue the way it is without any disturbance. Likewise, the people who are in the factory will continue to work for us,' said Mamillapalle. We will continue to make Nissan and Renault vehicles. Hopefully, we are in the right direction and I have no doubts that the alliance partner will remain. Renault Nissan Technology and Business Centre India will also continue the way it is without any disturbance. Likewise, the people who are in the factory will continue to work for Mamillapalle By the end of the day, it is just a 'change of master' at the helm with Renault now taking charge. Otherwise, it is business as usual at the plant operations in Oragadam near Chennai with the manpower remaining intact. 'There is good faith between the partners and no change in hierarchy just because of the 100% stake now being held by Renault,' he added. The French carmaker has already made known that its next course of action will see five vehicles roll out within in the next two years which will include SUVs in the B plus and C segments. There are no delays or hiccups which means the Duster and Bigster models are on schedule. Higher market share 'Currently we have a product portfolio that is decided till 2027 and the rest is in the pipeline. We working in that direction and from now till 2027-28, we should bring back our market share to at least 2.5 to 3%. Then you add a few more products with new energy vehicles and the share will be up further to over 3%,' elaborated Mamillapalle. Read more: Renault launches new design centre in Chennai, its largest outside France Asked if he was concerned about the current levels of global volatility following Donald Trump's new tariff era, the Renault India chief said such hurdles were part of business while driving home the point that manufacturing 'is not artificial intelligence' where problems can be solved in a jiffy. On the contrary, all these issues remain imminent threats but will eventually be resolved with time and perseverance. 'When COVID emerged first followed by the chip crisis, it was a big challenge. Then came the Russian war on Ukraine with no end in sight. These things happen all the time and we managers should handle it. This is a business that we are responsible for, else you do not need CEOs or presidents,' he said. When COVID emerged first followed by the chip crisis, it was a big challenge. Then came the Russian war on Ukraine with no end in sight. These things happen all the time and we managers should handle it. This is a business that we are responsible for, else you do not need CEOs or Mamillapalle Whilst on this subject, Mamillapalle also made it clear that there was no point opting for protectionism in a dynamic world environment. The US, for instance, is sending out a clear message that in the quest for MAGA (Make America Great Again), global trade will need to be accompanied by reciprocity in tariffs. Likewise, countries like India have also been pushing for greater levels of self-reliance when pushed to the wall by China. Planning for contingencies 'In a business where you are exposed to the rest of the world, you cannot remain in solitude. Neither can you de-risk everything. Sure, you need to plan for contingencies and every action/activity should have a Plan B or contingency risk aversion options,' said Mamillapalle. In his view, the top priority was to focus on stabilising internal market growth which would help from the viewpoint of keeping a country insulated from unpredictable scenarios like the present round of tariffs imposed by the US. Being a potentially 'massive consumer economy', there was no reason why car production would not reach 10 million units in India going forward. Read more: Nissan may be down now but is not out yet Mamillapalle then cited recent moves like the Budget exemption on Income Tax which were welcome initiatives and 'short-term injections'. However, this was clearly not enough. 'We need something on a long shot to increase consumption in the country. When this happens, issues of threats coming in from outside like logistics,tariffs etc have no meaning and that is the most important thing that we need to focus on,' he explained. Mamillapalle then cited the example of the Indian two-wheeler industry which was clocking production of around 20 million units annually. 'This segment is a consuming economy and the day is not too far away when this trend will be happening in cars too,' he said. For this to happen, there needs to be higher levels of disposable incomes across the country and not concentrated to a few regions in the south, west and parts of the north. Suzuki observations Interestingly, Suzuki Motor Corporation has referred to this reality in its Integrated Report 2024 which was published early this year. The company said it was aware that in India's total population of 1.4 billion, the primary customer base it serves is about 400 million people who can afford a car. 'Recently, internal discussions at Suzuki have increasingly been focused on how we will monitor, understand, and build relationships with the income segment of roughly one billion people, primarily agricultural workers, who do not yet earn enough to afford a car or motorcycle,' stated the report. Recently, internal discussions at Suzuki have increasingly been focused on how we will monitor, understand, and build relationships with the income segment of roughly one billion people, primarily agricultural workers, who do not yet earn enough to afford a car or Motor Corporation Integrated Report 2024 With India being a vast country comprising diverse ethnicities, the company said it was crucial to penetrate into the hinterland thoroughly, closely observe people's daily lives and think more deeply about their needs. 'We are exploring how Suzuki can help solve people's everyday problems and raise the standard of living for individuals. To do so, we believe the answers lie in the genba, genbutsu, genjitsu (actual place, actual thing, actual situation),' the report added. Two points of view with the same objective: how does one increase the penetration of cars in India? Renault believes that India's time will come so long as the right moves are made in putting more money into people's hands while Suzuki's outlook is more profound and even philosophical on the reality of affordability among the masses when it comes to buying a car. Read more: Renault's new launches lift first quarter sales
Mint
22-04-2025
- Automotive
- Mint
Renault India aims to triple market share with five new cars, expanded network
Chennai: Renault India Pvt. Ltd, currently holding less than 1% of the country's car market, laid out on Tuesday ambitious plans to triple its market share in three-four years, driven by five new vehicle launches and an expanded dealer network. The French carmaker's aggressive plans come just weeks after it completed the acquisition of Japanese automaker Nissan's stake in their manufacturing joint venture Renault Nissan Automotive India Pvt. Ltd. After this acquisition, Renault gained 100% control over the car manufacturing facility located in Tamil Nadu that has a capacity to produce more than 400,000 vehicles annually. Also read: Nissan to cut Japanese production of top-selling US model due to tariffs, source says 'The acquisition will now help us bring decision-making under one leadership. Due to the presence of two companies, it used to take time to arrive at a common ground and then implement the decision," Venkatram Mamillapalle, managing director and chief executive at Renault India, said in an interview. By 2027, the company is planning five new launches, which will include two SUVs and an electric vehicle (EV). Moreover, it will also increase the number of dealerships from the current 362 touchpoints across the country. The company, which entered the Indian market in 2005, is bringing a key change to its strategy to broaden its customer base and include more premium buyers. 'We have mostly targeted the sub- ₹ 10 lakh segment but now our customer profile will see a diversification to go beyond ₹ 10 lakh," Mamillapalle said. Along with its manufacturing unit, it has also consolidated its design centres into one in Chennai from two earlier. Through this centre, which is triple the size of its previous design studios, the company will design cars for the Indian and global markets. Also read: Trump gave automakers a tariff break. It's causing more confusion Renault India sold 38,636 cars in fiscal year 2025 (FY25), about 18% lower than the year prior. Its market share also slipped below 1% to reach 0.93% during the year. This came at a time when India's overall car market grew by almost 5% to record retail sales of 4.15 million units during FY25. 'Our objective is to increase volumes and utilize the capacity at our plant in Tamil Nadu fully. Increasing volumes will be a byproduct of gaining market share which we have to do," Mamillapalle noted. As part of its international plan, the Renault group has identified India as a priority market along with others like Brazil and South Korea. In Renault group's global sales, India is ranked 13th in its top 15 markets. But increasing market share in a slowing car market is easier said than done, given the fact the country's top five carmakers, led by Maruti Suzuki, Hyundai and Tata Motors constituted more than 80% of sales in the last fiscal. Also read: Ather Energy IPO: First mainboard public offer of FY26 to open on April 28; issue size cut. Check details here Moreover, a slowdown in retail sales amid weak consumer sentiment has also increased inventory levels at dealerships from less than a fortnight for top players in January to around 50 days in March. 'The forecast for April and May appears bleak, as a decline in retail activity is anticipated," analysts at PhillipCapital wrote in a 30 March note. Mamillapalle, however, strikes an optimistic note. 'The income tax benefits from the government, repo rate cut by RBI and salary bonuses in next few months should help give car sales a boost," he said.
