INDIA NO LONGER A SIDE STORY FOR RENAULT

VENKATRAM MAMILLAPALLE, Managing Director of Renault India, talks about the company's multi-pronged revival strategy, focus on deep localisation, retail expansion, multi-energy roadmap ahead and how Renault is preparing to reclaim its position in the Indian market, in a chat with BW Businessworld's

-  UTKARSH AGARWAL.

Renault's market share in India has dipped below 1 per cent, from around 2.7 per cent in 2020. What happened?

No doubts that we are sitting at 0.98 per cent market share, not even 1 per cent and that is a fact of the day. Let us step back as to what happened. In 2019, right before Covid-19, we had launched the Triber in India and were preparing to launch Kiger, that time our market share was 2.68 per cent. But then we were hit badly by Covid-19, then the semiconductor crisis followed.

Even before that, we had internal turmoil, you know what happened to the CEO (Carlos Ghosn) of the alliance. It started from then. Then came Covid-19, the chip shortage, and the Russia-Ukraine war.

Renault was selling over 5,40,000 cars in Russia. We had four plants there, when we shut them down. Three billion euros went into the books of France, Europe, our mother company which holds the balance sheet. Everything tanked. We were in disaster mode in Europe. So, at that point of time, the whole management was focused on revival of Europe, which is the foundation of our whole business. That took time.

From 2021 to 2023, Renault's financials started improving. Europe started reviving, followed by strong performance in international markets like Korea and Brazil. Till then, they did tell us (India) that you are on oxygen. We do not have money to give you and invest. That was the strategy which Renault management took globally that we will make the international market on oxygen as we survive and come back in Europe. The plan was four years, they did it in two years.

In February 2023, Renault made an announcement of Rs 5,400 crore investment in India. That is the starting point. Now it’s India’s turn.

What can we expect from Renault India going forward?