Renault plans to launch Kwid EV in India: Report

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Renault is considering building a mass-market electric car in India as part of a re-entry into a market where EV adoption is expected to grow rapidly from a small base, two sources with knowledge of the ongoing review told Reuters. .

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Updated on:
January 7, 2023 at 10:32 am

Renault is working on launching an India-made electric version of its Kwid hatchback.
Renault is working on launching an India-made electric version of its Kwid hatchback.

Renault’s research underscores how the French automaker is advancing its electrification plans even as it prolongs pending talks with partner Nissan Motor Co about investing in an electric vehicle unit it plans to spin off from other businesses.

It also signals a shift in perception of the Indian auto market, which is expected to grow the fastest of all major markets in 2022. Electric vehicles were on track to account for less than 1% of car sales last year, but the government has set a target of 30% by 2030 and has recently been successful in luring suppliers to international automakers through a series of subsidies.

Renault, Kwid, EV, EV, people familiar with the matter told Reuters.

The review will assess potential demand, pricing and the ability to build electric vehicles using local components, one of the people said, adding that any launch would take place later in 2024.

The move is part of a broader plan by Renault to revive sales in a country where the automaker remains profitable despite selling fewer vehicles in 2022 than a year ago, the person said.

Renault India declined to comment on product plans but said the company was “very focused on global electrification” as part of a strategy outlined by Chief Executive Luca de Meo and that “India is the group’s one of the main markets”.

According to S&P Global Mobility forecasts, India will overtake Japan as the world’s third largest market for passenger cars and other light vehicles. Industry-wide sales are estimated to grow 23% to 4.4 million vehicles by 2022.

This contrasts sharply with the outlook in the United States, where the market is expected to remain below 2019 levels next year, while demand in China is weakening.

Renault had hoped to reach an agreement with Nissan in December on the terms to spin off its electric car unit, but discussions have been slowed by the Japanese automaker’s concerns over a range of issues, including the protection of its intellectual property.

“India will play an important role in future Renault-Nissan projects but will not finalize local plans until a global alliance restructuring agreement is reached,” one of the sources said.

In India, domestic automaker Tata Motors, which dominates EV sales, and foreign players such as Stellantis, Hyundai Motor and SAIC MG are all lining up to launch EVs.

Renault already produces a version of the Kwid EV in China that is sold in the Chinese market as the City K-ZE and exported to France as the Dacia Spring. The Spring is the second best-selling electric car in France in 2022, with a range of 230 kilometers and a starting price of 20,800 euros ($21,869) before government incentives.

To qualify for the incentive in India, Renault must build cars at its alliance plant in southern India and source components locally, the first person familiar with the matter said. The Indian plant is majority-owned by Nissan.

Nissan declined to comment.

Renault currently produces the Kwid hatchback, Kiger SUV and seven-seat Triber in India. Its sales will fall 9% to about 87,000 vehicles in 2022, and its market share will drop to just over 2%.

Renault also plans to invest in refurbishing and upgrading some of its key dealerships in major cities as part of its restart plan in India, the person said. The company says it has 500 sales outlets in India.

First published date: Jan 7, 2023, 10:32am CST

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