Renault's return to the Indian market is based on a new strategy and an old brand.
Renault is betting on the revival of its iconic Duster SUV to restart its business in India, which is going through difficult times, and reposition itself in the premium segment under the leadership of new CEO Francois Provo in the face of increased global competition, reports Reuters.
Once an outstanding model whose popularity in India eclipsed Renault itself, the Duster was discontinued almost five years ago due to the high cost of complying with stricter emissions standards. Renault plans to unveil on January 26 a completely redesigned Duster, built according to modern safety and emissions standards and adapted to Indian tastes, followed by a larger Dacia-inspired Bigster SUV and an electric car. This strategy means a clear transition from mass-market models to wealthier middle-class buyers, whose numbers are growing rapidly and who are looking for cars at an affordable price but with high performance.
Renault is seeking to regain market share, which has fallen below 1% from a peak of 4% in 2016, while reducing its significant dependence on slow-growing Europe, which still accounts for almost 70% of its sales, in the face of pressure from Chinese competitors such as BYD. India plays a central role in this regard: SUV demand currently exceeds half of the market, sales could reach 6 million units by 2030, and barriers limiting Chinese imports give space to traditional brands. With full control of the 500,000-unit plant in southern India and plans to localize supplies for global exports, Renault sees restarting the Duster as a crucial step, with potential production of up to 140,000 units per year — enough, according to Provo, for even a modest 5% share to be a turning point.