Renault to Invest $600 Million in India to Launch New SUVs and Boost Exports

Chennai / New Delhi, August 2, 2025 — In a bold expansion of its India operations, Renault has announced a $600 million investment to develop a new portfolio of SUVs built locally in Chennai, coupled with efforts to position the country’s manufacturing hub as a global export centre. The strategic move follows Renault’s acquisition of full control over its former alliance joint venture plant and underscores renewed commitment to India’s growing automotive market.

Lead: Renault Repositions India as Strategic Hub

Renault India Managing Director Venkatram Mamillapalle revealed the investment is aimed at launching four SUV models and two electric vehicles by 2027, reinvigorating Renault’s presence in India—where its market share had fallen below 1% from over 3% five years ago. With India currently accounting for less than 2% of its global sales, Renault is now launching an aggressive product-led comeback backed by local manufacturing and export ambitions.

New Product Line-up and Export Strategy

Under the investment plan:

• Four C-segment SUVs and two A-segment EVs will be engineered and produced at the Oragadam plant in Chennai.
• The products will be shared across Renault and Nissan brands, catering to both domestic buyers and overseas markets in Africa, South America and Southeast Asia.
• Vehicle production is expected to commence in 2025, with the EV models marking both brands’ first locally-made electric vehicles in India.

Infrastructure, Capacity & Sustainability

Renault’s Chennai manufacturing plant, originally a joint venture with Nissan, has operated at roughly 50% capacity (≈250,000 units annually). With full ownership secured earlier in 2025, Renault now aims to scale this utilization to 80–100% through expanded production and exports.

Energy sustainability is another key pillar. The company intends to make the factory carbon-neutral by 2045, reducing energy consumption by half and sourcing from entirely renewable power—with substantial solar, wind and biomass generation already underway.

Economic Impact and Employment

The investment will also deepen product development and R&D hub capabilities at the Renault Nissan Technology & Business Centre in Chennai, leading to the creation of up to 2,000 new jobs in engineering, design and electric vehicle development.

Local suppliers are expected to be onboarded extensively, promoting supply chain localisation for components including ICE, hybrid, and EV powertrains.

Expert Commentary and Long-Term Vision

“This $600 million investment signals Renault’s intention to turn the page in India,” noted Aparna Rao, auto industry analyst at DriveInsight. “By shifting focus from entry‑level hatchbacks to SUVs and EVs, Renault will align with India’s evolving demand trends and export strengths.”

Venkatram Mamillapalle, MD of Renault India, added: “We are going on the offensive with mix of compact and mid‑size SUVs and EVs. With full control of the Chennai plant, we now have operational agility and capacity to meet both local and export requirements”.

Competitive Landscape and Market Opportunity

Renault’s previous Indian offerings — Kwid, Kiger, and Triber — have failed to make a major dent in a SUV‑dominated market where SUVs and three‑row vehicles now account for nearly 65% of annual sales (out of about 4.3 million units). The new SUV-focused strategy, complemented by two EV launches, seeks to deliver relevance in both high-demand domestic and export segments.

Industry data show Renault’s market share dropped from 3% to below 1% over five years due to lack of product refresh. The new rollouts aim to reverse that slide by offering more aspirational and globally competitive vehicles designed in India.

Conclusion

Renault’s $600 million investment in India marks a decisive shift in its strategy — prioritising SUVs, electrification, and export competitiveness. With a carbon-neutral roadmap, local model development, and production ramp-up, Renault aims to rebuild its footprint and profitability in one of the world’s fastest-growing auto markets. The coming years will reveal whether its renewed India bet can restore the brand to relevance and scale in both domestic and international arenas.

Frequently Asked Questions (FAQs)

1. Why is Renault investing $600 million in India?
Renault is investing $600 million to develop and manufacture four new SUVs and two electric vehicles (EVs) in India. The move is part of a broader strategy to reclaim market share and use India as a global manufacturing and export hub.

2. What new vehicles will Renault launch under this investment plan?
Renault will launch four C-segment SUVs and two A-segment electric vehicles by 2027. These models will be produced at its Chennai plant and shared across Renault and Nissan brands for both Indian and global markets.

3. Will this investment impact exports from India?
Yes. Renault aims to turn its Oragadam (Chennai) plant into a global export hub for Africa, South America, and Southeast Asia. Export volumes are expected to rise significantly with the new SUV and EV lineup.

4. What will be the employment and economic impact of this investment?
The project is expected to create up to 2,000 new jobs in engineering, R&D, and manufacturing. It will also strengthen India’s EV supply chain by increasing local sourcing of key components.

5. When will the new Renault vehicles start production in India?
Production of the new models is scheduled to begin in 2025, with full rollouts and exports ramping up over the following two years.