Renault considers making mass-market EVs in India

French automaker Renault is mulling building a mass-market electric vehicle (EV) for India, Reuters reported, citing sources. The EV will be a part of the company's renewed push into a market where EV adoption is expected to grow quickly from a small base. The strategy shows how Renault is pushing ahead with electrification plans.

This comes even as it extends unresolved negotiations with its partner Nissan Motor about investing in an EV unit it plans to carve out from its other operations.

Renault's move to launch a mass-market EV in India also points to the shifting perception of the auto market in India, which posted the fastest growth of any major market in 2022. While EVs were on track to be less than 1% of car sales last year, the government has set a target of 30% by 2030, and has had recent success in attracting suppliers for international automakers, with a range of subsidies.

The carmaker could possibly launch a made-in-India electric version of Renault's Kwid hatchback, the report stated. The automaker already produces a version of the Kwid EV in China which is sold in that market as the City K-ZE.

Renault will conduct a review to assess potential demand, pricing and the ability to build the EV with local components. However, the launch would only happen late in 2024 or later.

Renault's move also makes sense as India is set to become the world's third-largest market for passenger and other light vehicles, displacing Japan, according to a forecast by S&P Global Mobility. The country's industry-wide sales grew an estimated 23% to 4.4 million vehicles in 2022. "India will play an important role in future projects of Renault-Nissan but local plans will not be finalised before a global deal on a restructuring of the alliance is reached," one of the sources told Reuters.