One in Three Renault Cars Sold Outside Europe to Be Hybrid or Electric by 2027

Last Updated on June 30, 2024 by SPN Editor

Renowned French automotive giant, Renault, is making significant strides in expanding its global presence with an extensive investment of approximately €3 billion ($3.2 billion) as part of its International Game Plan for 2027. This initiative extends Renault’s reach beyond Europe, targeting growth in emerging markets such as India. Renault aims to have one in every three Renault cars sold outside of Europe by 2027 to be either hybrid or electric cars.

Renault already boasts a substantial global footprint, with over 40 percent of its sales originating from regions outside Europe. The company operates manufacturing facilities in diverse locations, including Latin America (LatAm), North Africa, Turkey, India, and South Korea.

Fabrice Cambolive, CEO of Renault Brand, emphasized the company’s vision, stating, “We have redesigned our footprint and bolstered our competitiveness. Approximately €3 billion will be expended as part of the International Game Plan for 2027, and eight Renault car models will be produced and introduced outside Europe by 2027. This includes five C- and D-segment cars and two light commercial vehicles.”

Cambolive, who took on the role of CEO in February 2023, had previously served as the Renault brand’s Chief Operating Officer since May 2022. He highlighted the company’s strong commitment to electrification, with the goal of having one in every three Renault cars sold outside Europe to be hybrid or electric.

Renault also unveiled its new compact sport utility vehicle (SUV), named “Kardian,” with a strategic focus on emerging markets (EMs). Kardian is expected to become Renault’s smallest SUV in several EMs, especially in regions where the Kiger model is not available.

Renault had previously announced its plans to manufacture a C-SUV in India earlier this year, and Kardian is anticipated to be a part of that broader long-term roadmap.

Bruno Vanel, Vice President of Product Performance at Renault Brand, explained the company’s strategy, stating, “The 2027 plan is based on two platforms: one is the Renault Group modular platform for LatAm, Turkey, India, and North Africa, and another is the modular architectural platform for South Korea. Kardian is the first of the eight models to be launched on a modular platform.”

This expansion coincides with Renault’s heightened focus on the Indian market. Having achieved the milestone of producing 1 million Renault cars in India earlier this year, Renault has set an ambitious target of reaching 2 million by 2030, driven by new launches and a planned electric vehicle (EV) venture.

Renault India is actively developing a range of new models, including two internal combustion engine products and an A-segment EV, all of which are set to commence production in 2025.

In the Indian market, Renault currently offers three models: the Kwid, Kiger, and the Triber. The company exports to 14 countries and regions, including South Africa, the South Asian Association for Regional Cooperation, and the Asia Pacific. Renault’s manufacturing facility near Chennai in Oragadam has an annual production capacity of 480,000 units.

Renault’s strategic partner, Nissan Motor Corporation, and Renault SA, which recently restructured their global alliance in February, have outlined plans to invest Rs. 5,300 crore in India to launch six Renault cars models, including two EVs. This significant investment is expected to create jobs for 2,000 people. Both companies are committed to producing three new models each on joint platforms while preserving the distinctive styling of their respective brands.

South Africa continues to be Renault’s primary export destination, with the majority of the company’s export business directed there. In 2022, Renault produced approximately 84,000 vehicles and exported 28,000, with similar numbers expected in 2023. The company prides itself on a high level of local manufacturing, with approximately 92 percent of the process completed locally.