Renault India in revamp mode: country CEO & MD Venkatram Mamillapalle

New Delhi: Renault is revamping its existing products in India, adding new features to an ageing portfolio of small cars and compact sports utility vehicles before it invests in launching brand-new models here, in an interim plan that will help the French carmaker achieve a “double-digit” growth in 2024, a top company official said.

The company, currently competing in a shrinking small-car segment and facing competitive pressures, is refining its offerings to amplify value for consumers without escalating prices, Venkatram Mamillapalle, country CEO & managing director of Renault India, told Mint in an interview.

He likened the company’s new approach to the “Mini Cooper” way, emphasizing the enhancement of the value proposition for small cars while avoiding price hikes. “The whole idea is, we are changing the proposition of these three models,” Mamillapalle said.

“We are operating in the sub- ₹10 lakh segment. In the A-segment (entry-level cars), which is shrinking very fast, I’m one out of two players and my competition is giving huge discounts. I am not going to play a discount game. The intention is to give more value to the customer by adding features, variants, safety and comfort. And so that’s what we’re doing—the customer may not recognize it today, but tomorrow they will. I’m not saying that I want to become a Mini Cooper. But I am tending towards it, that’s our thought process,” he added.

Renault’s immediate strategy involves an upgrade of its existing product portfolio comprising the Kiger, Triber, and Kwid models. These vehicles will be equipped with advanced safety and convenience features, including tyre pressure monitoring sensors (TPMS), electronic power steering (EPS), and airbags to align with expected regulations. To further bolster its market presence, the French carmaker will introduce new variants, including accessible automatic options in the Kwid, making it the most accessible automatic transmission model in the market, and an enhanced CVT (continuously varying transmission) variant in Kiger.

“The whole segment is shrinking, significantly shrinking with only two players left...we are not going to exit that segment before our competition does, and that’s an advantage”, Mamillapalle said.

Meanwhile, Renault is actively advancing its electric vehicle (EV) strategy in India. Mamillapalle confirmed the company’s plans to introduce an EV in the country within the next three years, forming one of the five product launches the company has lined up for the country till 2027 as part of the Renault-Nissan alliance, before embarking on a full-blown international game plan, in which Renault will invest €3 billion to launch eight products across five key hubs, including India.

While 2024 will not see new nameplates from Renault, the company will strengthen its brand-building in India, incorporating new logos across dealerships and upcoming vehicle launches. Additionally, the company is diversifying its business operations with the introduction of a new stream focused on selling used cars under “renew”, Renault’s global used-car business.

Despite facing challenges such as the covid pandemic, chip crisis, and market dynamics in regions such as Russia, where Renault had a significant 38% market share, ultimately affecting fund flow to markets such as India, the company remains steadfast in clawing back sales it has lost in 2023, having closed the year at 1.2% passenger vehicle market share. “We squeezed two years of struggle into one...It’s a take off for us now. So that’s what it is. It’s a new product and financial footing almost with this new year and we are set to take off much better,” Mamillapalle said.