To Be Or Not To Be? This Carmaker Is Reviewing India Strategy

Struggling with declining sales over the past few years, Renault India Private Limited is reportedly conducting a strategic review of its operations in the country, according to sources familiar with the matter. The French automaker, which once gained significant traction with models like the Kwid and Duster, is facing intensified competition and shifting consumer preferences in the Indian market.

Sources indicate that the review comes as Renault struggles to maintain its market share, with declining volumes affecting its long-term viability in one of the world’s most competitive passenger vehicle markets. The company’s market share has been dwindling over the years, with a limited number of new product launches contributing to stagnation.

Despite its initial success in the compact and SUV segments, the brand has lost momentum against strong competition from Maruti Suzuki , Hyundai, and Tata Motors. As per Vahan data, Renault's sales dropped by 24% to 39,991 units in 2024 from 52,206 units in 2023. Additionally, its market share stood at just 0.1% of the 37,39,367 total passenger vehicles retailed in 2024, according to the data.

Exploring Multiple Possibilities

“Renault India is evaluating various strategic options, including revising its product lineup, optimizing production, and even potential restructuring. It is also reassessing its manufacturing strategy and future investment plans in the country,” revealed a source who requested anonymity.

The source further noted that Renault's next steps could determine whether it remains a strong contender or scales down its presence in India's highly dynamic market. However, the company has no plans to exit India and aims to capitalize on the growing Battery Electric Vehicle (BEV) segment in the long term.

With India’s automotive industry shifting towards electric mobility and premium SUVs, Renault is expected to realign its portfolio. “The company could introduce hybrid and electric models while also revamping its existing lineup. Another potential strategy could involve forming alliances with a local partner to strengthen distribution, technology, and manufacturing capabilities,” another source told Republic Business .

An emailed questionnaire sent by Republic Business to Renault India’s spokesperson remained unanswered despite multiple attempts.

Renault buying Indian Manufacturing JV 

Earlier this month, Renault acquired Nissan’s 51% stake in their joint venture—Renault Nissan Automotive India Pvt Ltd (RNAIPL)—taking full ownership of the manufacturing unit. While Renault now has complete control of the facility, Nissan will continue using it for vehicle production and exports.

Industry experts believe that without a refreshed product lineup and an aggressive pricing strategy, Renault India’s road ahead will remain challenging.

“Renault needs a complete reboot of its India strategy. Despite being one of the few carmakers still offering strong value-for-money products, the brand has struggled to scale up. The recent acquisition of Nissan’s stake in the India plant signals a renewed commitment to the market. Perhaps this fresh start will finally help Renault overcome its long-standing hurdles—especially in achieving consistent sales momentum,” said Puneet Gupta, Director, S&P Global Mobility.

Meanwhile, Renault is working on an all-new Duster, including both five- and seven-seater variants, in an effort to strengthen its presence in the booming SUV market.