27-04-2025
Renault India revs up for a comeback. Set for 5 car launch lineup starting with new Duster
But now, the carmaker claims to have a 'new' plan for India. Not just the new Design Center, but they intend to launch five new vehicles in the next two years.
And there is a simple reason for that—Renault has not done all that much the past few years. Alongside the Kiger and its cousin, the Triber, the carmaker sells the Kwid small car. According to production and sales data from the Society of Indian Automotive Manufacturers (SIAM) for the financial year ended March 2025, Renault India had domestic sales of 37,900 units making them the tenth largest manufacturer in the country.
We will meet again this year, that much is certain,' those were the words with which Venkatram Mamillapalle, Country CEO and Managing Director, Renault India bid me farewell. I had travelled to the Renault-Nissan Technology and Business Center located outside Chennai for the inauguration of the Renault India Design Centre. This was my first proper interaction with the French carmaker since the launch of the Kiger SUV four years ago.
But can that make them relevant again?
Their joint-venture with Mahindra, which lasted until 2011 was a failure. The result, the Logan sedan, is a forgotten piece of Indian motoring history. Then, in 2012, Renault launched the Duster SUV. The Duster was a mega-hit and while it went through many iterations, it was an indication of things to come in the Indian market as the approximately four and half meter long SUV bodystyle began to dominate the markets.
Despite being a product from Renault's Romanian 'Dacia' brand known for their simplicity, the rugged nature of the Duster and sold over 40,000 units in the first year alone. Renault India kept the Duster in production until 2022 even as sales flagged, but by the end over 9,00,000 units had been sold. And in its early days, the Renault Kwid, designed to take on the Maruti Alto was also a sales success.
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The downfall of Renault
The Indian market for both Renault and Nissan, a.k.a 'The Alliance' was given direction by Carlos Ghosn. One could argue that Ghosn's downfall in 2018 directly impacted the fortunes of both brands. However, some of Renault's problems predated this. For example, in 2017 Renault launched the Captur, a vehicle based on Renault's lower-cost B0 platform for emerging markets. It was a commercial failure.
Renault's decision to not bring the second-generation Duster to India in 2019 was a head-scratching one. At the time, Renault India executives had claimed this was due to cost issues. This despite a strong brand image and evidence that average car prices in India were trending upwards.
'The idea of mistakes is that you learn from them,' Mamillapalle told me. But why did it take so long for the French carmaker to refocus on India?
'The Russia-Ukraine war hit us particularly hard, not only was Russia a major market for us, the subsequent crisis in Europe really impacted demand in our home market. We have resolved those to a great extent and now we can bring our focus back to the world's third-largest car market.'
And thus the new third-generation Duster is the first of the five new products that Renault India is expected to launch. It will be followed by a seven-seat version, which is sold as the Dacia Bigster in Europe but specifications could be unique for India.
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Rethinking strategy
But even ahead of the launch of these two new cars in the coming months, Renault India has started to make some moves in the market. Given the growing popularity of CNG as a fuel, Renault introduced CNG versions of the Kiger and Triber. 'We have been surprised by demand in the northern Indian markets where these variants have been launched, and we intend to bring CNG models to more markets soon,' said Mamillapalle.
One thing however is certain, though the original Duster was incredibly popular thanks to the 1.5 Diesel engine, the new products from Renault India will not have a diesel option with CNG increasingly seen as the alternative to affordable motoring.
As for electric vehicles, Renault has been winning kudos in the European motoring media for their new Renault 4 and Renault 5 electric hatchbacks, but chances of these coming to India are slim. The Indian EV most likely will be based on a SUV platform and Indian engineers and designers in Chennai will play a major role in its development. 'Much of the Renault 5 was developed and engineered out of the very complex that we are sitting in,' Mamillapalle said proudly.
And of course, there has been the issue with 'The Alliance', Nissan's problems are well-documented. But Renault India has stepped up and taken over the Oragadam manufacturing plant. 'This has a capacity of 4,80,000 units per year and is the cornerstone of our $600 million commitment to India,' he added. Nissan products will now be contract manufactured by Renault in India but Mamillapalle is convinced that the growing Indian market and increased sales by Renault will see the plant's capacity utilisation grow.
All of this is part of the 'Renault, Rethink' strategy by the carmaker which is paying dividends in Europe. One suspects that in India as well, the new Duster could make a breakthrough even without a diesel motor. However, as they say, 'the proof of the pudding is in the eating', so watch this space to see how these new vehicles really are to drive.
@kushanmitra is an automotive journalist based in New Delhi. Views are personal.
(Edited by Theres Sudeep)
