Updated January 9th, 2024 at 18:21 IST
Renault requests Government for regulatory consistency
With a market share of less than 2 per cent in the country’s burgeoning automotive landscape, Renault is recalibrating its approach to regulatory compliance.
Renault request consistency: Renault is urging the government to maintain consistency in its regulatory frameworks, citing unforeseen engineering expenses due to New Delhi's deferred enforcement of a proposed mandate for six airbags in vehicles, according to the automaker's India head.
With a market share of less than 2 per cent in the country’s burgeoning automotive landscape, Renault is recalibrating its approach to regulatory compliance, as highlighted by Venkatram Mamillapalle in an interview.
In 2022, India had mooted a mandate requiring six airbags in all new vehicles sold after October 1, 2023. However, the government postponed its final decision, leaving Renault and its suppliers with substantial re-engineering costs.
Mamillapalle noted, "The engineering costs have become an irreversible investment for us. Consequently, we are reverting to making six airbags an optional feature for consumers, indicating that Renault will await finalised regulations before making such substantial investments."
He further stressed the importance of governmental adherence to established regulatory roadmaps, highlighting the substantial financial implications for automakers like Renault.
Committed to growth strategy
The automaker's apprehensions emerge ahead of a significant investor summit in Prime Minister Narendra Modi's home state of Gujarat, aimed at attracting businesses.
Renault's concerns resonate with broader industry sentiments. Last year, Transport Minister Nitin Gadkari's remarks about potential tax hikes on diesel vehicles sparked market volatility, though subsequent clarifications mitigated the impact.
Despite experiencing a decline in domestic sales last year, Renault remains committed to its growth strategy, prioritising profitability over mere market share. The company plans to introduce upgraded versions of its existing models in 2024, incorporating enhanced technology and connectivity features to cater to discerning entry-level consumers.
In alignment with Renault and its alliance partner Nissan's broader vision, the duo intends to invest $600 million in India over the ensuing three years. This investment initiative includes the introduction of five new vehicles, encompassing mid-sized SUVs and electric models, beginning in 2025.
Beyond 2027, Renault anticipates further financial commitments in India, as part of its global strategy to allocate $3.2 billion in non-European markets, including Brazil, India, and Turkey.
Emphasising its steadfast commitment to India, Renault reaffirmed its dedication to bolstering local manufacturing, underpinned by its production facility located in Chennai.
(With Reuters inputs)
Published January 9th, 2024 at 18:14 IST