Renault India CEO Venkatram Mamillapalle says they want to minimize customer costs associated with electric vehicles (EVs). Renault doesn’t wish to burden them with excessively high EV costs that typically plague buyers of these types of cars.
“To maximize cost-effectiveness for our buyers,” Mamillapalle stated, “we require lots of local suppliers for electric vehicles to help build out a local supply system. By keeping costs competitive across regions and suppliers localized,” acquisition costs become more manageable for buyers.
Renault specializes in SUVs in India but plans to introduce electric vehicles (EVs) soon before committing to this sector.
“Perhaps we are somewhat reserved due to India’s undeveloped electric vehicle ecosystem,” Mamillapalle suggested. Mamillapalle underscored the significance of infrastructure to both passenger car and truck industries.
Renault isn’t the only automaker taking steps to use Indian suppliers to build electric vehicles (EVs). Tata Motors and Mahindra & Mahindra have also joined in this trend, working closely with local suppliers to reduce EV costs in India.
Indian automakers manufacturing electric vehicles (EVs) in their domestic market can now take advantage of incentives provided through the FAME India scheme, with subsidies available for purchasing the EVs and installing their charging infrastructure.
Renault believes the growth of India’s electric vehicle (EV) market is “inevitable”. They forecast passenger vehicle sales to hit 3.8-4 million this year and anticipate that electric vehicles will account for much of that increase.
“We are extremely optimistic about the future of electric vehicles in India,” Mamillapalle stated, adding, “We believe the market will expand quickly.
Renault-Nissan Alliance in India’s INR 5,300 crore investment plan announced in February for six new cars (three each from Renault and Nissan) has begun and is making good progress, said he. Renault will produce six new cars at their Oragadam plant near Chennai, which has an annual production capacity of 480,000 vehicles and should become fully functional by 2024.
Renault plans to open a battery manufacturing plant in India within the next ten years, although they have not announced its location. They anticipate being operational by 2025.
Renault’s investment in India demonstrates its dedication to its automotive market. Renault considers India an integral demand for electric vehicles (EVs), so the company is investing heavily to ensure it can thrive there.