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RENAULT IN INDIA

Renault has consolidated its presence in India by forming a partnership with local manufacturer Mahindra & Mahindra in 2005. Today, it is expanding its presence at speed: a new joint venture with Bajaj Auto, a logistics platform in Poona and a new design centre in Mumbai.

A strongly expanding economy 

With record growth of 9.4% in 2006-2007, India is the world’s 12th biggest economic power.

 

The car market is growing by around 10% a year, attracting the attention of many vehicle manufacturers. India’s middle classes total more than 350 million people, all of whom are potential buyers, and their numbers are continuing to grow.  

 

Suzuki/Maruti is currently No. 1 on the small car market. Honda, DaimlerChrysler, GM and Fiat/Tata are building their presence. Renault is moving into position.

Mahindra-Renault Ltd: a joint-venture for Logan 

Renault entered the Indian market in 2005 when it signed a partnership with Mahindra & Mahindra, India’s fourth biggest vehicle manufacturer. The joint-venture Mahindra-Renault produces and sells Logan. The first Logan left the Nashik plant in 2007, badged as a Mahindra-Renault vehicle.

 

“Logan has established itself in India  [...]. We are now launching it in Nepal, where the automotive industry is growing strongly.”  Gérald Porcario, General Manager, Marketing at Mahindra-Renault.

Renault Nissan/Bajaj Auto: a promising partnership 

Making cars more affordable. Such is the aim of the partnership set up in 2008 between Renault Nissan and India’s Bajaj Auto.

The aim is to produce and sell the ULC at an entry-level price of US$ 2,500 (€1,865). The ULC will be produced in Chakan (Maharashtra state) in a specially built plant. It will go on sale in India – its main market – in 2011, and could subsequently be sold on other emerging markets.

 

“We must learn once again how to build a car from scratch. This project takes the automotive industry back to its roots, and that’s good for both Nissan and Renault.” - Carlos Ghosn

Design center in Mumbai: impetus for creative projects 

Set up as an observational unit in India in 2005, Renault Design India has played a key role in a number of high-profile projects, including the Logan Steppe concept and R&D into luxury textiles reflecting India’s heritage.

 

In 2008, the unit became a fully fledged design center. It will design vehicles for the Indian and regional markets. Renault Design India thus becomes the first vehicle design center to be set up by a western manufacturer in India. An opportunity for Renault to reinforce its international design network.

A logistics platform in Poona 

Renault opened a logistics site in Poona (Maharashtra) in 2008. This platform will turn out components for all Renault-Nissan Alliance production plants. It is expected to export €200 million worth of parts between now and 2010. The Poona site will thus contribute to Renault’s international development.

 

 

India in brief (2007 figures)

 

  • Capital: New Delhi
  • Area: 3,165,596 km²
  • Population: 1,148 million
  • GDP: US$ 1,170,968 million
  • Roads: 3,319,644 km

 

Renault in India: key points

 

  • Mahindra-Renault, 49% owned by Renault, produces the Logan sedan.

  • 3,500 employees at the Nasik site.

  • A production capacity of 50,000 vehicles/year at Nasik and 400,000 units at Chennai.

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