Latest news with #VenkatramMamillapalle
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Business Standard
11-05-2025
- Automotive
- Business Standard
'A-segment cars to bounce back soon, Kwid to stay as long as viable'
Renault India Chief Executive Officer and Managing Director Venkatram Mamillapalle said the company will launch five new products over the next two years. In an exclusive face-to-face interview with Business Standard's Shine Jacob, he discusses the future of the Kwid, Renault's acquisition of Nissan's Chennai manufacturing unit, upcoming launches, and the company's roadmap for growth in India. 1. How do you see the future of A-segment cars, including the Kwid? This is a very paradigm-shifting question. We have only two players and two cars in the segment. Both are more or less stable in their respective space and size. There's no doubt that the segment itself is rapidly diminishing. In my opinion, it won't be long before the segment makes a comeback. The moment people start viewing cars as a commodity and not a luxury, this segment will return. That evolution will happen with the maturity of the buyer. Until then, the segment's survival remains a question. Our objective is to continue producing the Kwid as long as we can sustain it in the market. 2. You recently acquired Nissan's stake in the Chennai manufacturing unit. What does this mean for you? It's like putting our foot down and telling Indian consumers we are here to stay. We believe in the Indian market, we want to grow, and now we have full control over a plant with a 480,000-unit capacity. Owning the facility helps us make decisions faster, which is why we acquired the stake. Currently, we are exporting only right-hand drive models. We are exploring exports of left-hand drive (LHD) vehicles and are in discussions to launch them soon. 3. How are you planning to improve capacity utilisation and sales? Right now, our capacity utilisation is around 48 per cent. The five new product launches over the next two years will add volume, taking us to about 280,000–300,000 units—equivalent to 65–70 per cent utilisation. We also have plans for additional product enhancements and will continue producing Nissan models. Combining our portfolio with Nissan's will help optimise plant capacity. The new launches will also include electric vehicles (EVs). 4. You had a tough year in 2023. How do you expect the market to evolve by the time you complete these launches? Launching a new model brings novelty to the market. We will enter new segments, moving beyond the sub-Rs 10 lakh space to models priced above Rs 10 lakh, which should support our growth. Today, we have 362 outlets and 240 service centres. With new products, we'll need to scale this up. We'll focus on expanding in areas where market concentration is high. 5. What role will EVs and alternate energy sources play going forward? EVs currently represent less than 2 per cent of the market. Their adoption will grow either through incentives or penalties—targeting both customers and OEMs. However, the supporting ecosystem, such as charging infrastructure and power availability, must evolve. This needs to be driven by government planning and policy. From my perspective, EV market share could rise to 12 per cent by 2032. Strong hybrids are more favourable in the current context and will take a significant market share if EVs don't take off. Additionally, compressed natural gas (CNG) and gasoline vehicles will thrive due to stronger existing ecosystems. 6. You recently opened a design centre in Chennai. How significant is this in Renault's global strategy? This is Renault's largest design centre outside France and one of just four worldwide. The Indian market is set to boom, with launches happening at unprecedented speed. To respond quickly, we need everything nearby, under full OEM control. India offers a rich talent pool at competitive costs. The centre will not only support our domestic operations but also contribute to Renault's global business.
The Print
27-04-2025
- Automotive
- The Print
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. Also read: My Hong Kong visit was a reality check. XPENG has taken the first step for a 'flying car' 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. Also read: Hyundai, Maruti, Nissan—sales are down at home, but 'Made in India' exports are driving growth 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)
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
New Indian Express
22-04-2025
- Automotive
- New Indian Express
Renault strengthens India presence with design centre in Chennai
Renault is strengthening its presence in India with the launch of its largest design centre outside Europe in Chennai. This strategic move supports the French carmaker's plan to introduce five new models in the country over the next three to five years. The new centre, built with an initial investment of 1.5 million, will serve as a key pillar of Renault's International Gameplan 2027, aimed at expanding its footprint in emerging markets. The initiative also marks a shift in Renault's alliance with Nissan. Renault set to acquire Nissan's 51% stake in their Indian joint venture. 'All employees are being absorbed, and operations will continue as usual,' said Venkatram Mamillapalle, CEO and country managing director, Renault India. The Chennai facility will focus on models designed for Indian consumers while also contributing to global projects. 'We began our design journey in Pune and Mumbai before the Chennai plant came into being,' said Laurens van den Acker, chief design officer, Renault Group. 'We later consolidated operations in Chennai to work more closely with our R&D and engineering teams at RTCbi.' Renault has since closed its Pune and Mumbai studios, and the Chennai centre is now three times the size of its former Mumbai facility. The centre features advanced tools, including 3D model evaluation zones, VR integration, and an 8.5-metre-wide LED wall. Renault is also developing an electric vehicle for both the Indian and international markets. Despite earlier successes with models like the Duster and Kwid, the company has faced challenges competing with Maruti Suzuki and Hyundai in recent years. To regain momentum, Renault is focusing on deep localisation-it already manufactures vehicles in India with up to 90% local content. The company is also moving to take full ownership of its Chennai plant, previously part of its alliance with Nissan. The new design centre's philosophy, Tactile Confluence, blends European minimalism with Indian cultural elements, reflecting Renault's growing commitment to India.
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.
