Renault plots its return to the Indian market

Like a Parisian lover who once swept you up with unexpected fervour only to withdraw for a time before seeking a way back in, French carmaker Renault appears intent on tracing a similar arc in India’s automotive market, which in FY25 produced more than 50 lakh passenger vehicles.

The Kwid hatchback was an instant success on its debut in 2015, while the Renault Duster helped make SUVs fashionable well before their current resurgence as an essential purchase for many Indians. Yet Renault has been notably quiet in recent years while the likes of Tata Motors, Maruti Suzuki, and Hyundai have raced ahead. 

“Our numbers have been declining slightly for a simple reason, ‘We did not launch new cars or new features for two or three years,’” admits Francisco Hidalgo, Renault India’s vice president of sales and marketing.

Covid played its part, of course. But the Russia Ukraine war proved more disruptive. Renault is the biggest car brand in Russia with more than 30% of the market. That business was upended, and European legal requirements brought further complications.

“It is fair to say we did not bring novelty to India,” remarks Hidalgo, which, he says, is the worst possible way to treat an Indian car buyer.

To him, the Indian customer is “very demanding on novelty, freshness, features, and on price.” He cites the sunroof as a case in point. It is, he argues, an illogical choice in a country where rain is sparse and summers punishing. “Most people keep it closed and yet it is a must-have.”

One way he hopes to reconnect with the Indian consumer is by transforming the ambience of showrooms. These, he feels, have been neither warm nor welcoming.

Customers study specifications online and, by the time they walk into a showroom, “mostly know what they want,” he believes. “When people come to the showroom, they are looking for something else. We want them to feel at home.”

How does one make a customer feel at home in a car showroom? For a start, Renault will reduce the number of vehicles on display to lower the pressure of selling and buying. “If you have to take a decision about the new car, make sure that you are relaxed enough to take the right decision.” The refreshed Triber and Kiger will take pride of place in this new environment.

This shift forms part of the carmaker’s Renault.Rethink strategy to win back Indian buyers. “In India, I think it's very clear that either you go all in, or just don't go. We have to make a clear commitment to India that we are here to grow; we are here to stay, we are here to develop our business.”

Renault has taken full control of its Chennai manufacturing plant from Nissan, is developing new models for the market, and is reassessing its market positioning, particularly the perception of being merely affordable. “We have forgotten a little bit some of the things that made us really strong in the market, which is this capacity to bring something new to the market, and to disrupt it,” he says.

To signal its renewed commitment, Renault will turn first to television before following up with precise digital targeting. Whether India welcomes the Parisian brand back into its embrace is something only the fates sales will reveal.