Francois Provost, CEO, Renault Group and Stephane Deblaise, CEO Renault Group posing with newly launched Renault Duster at the unveil of futuREady India strategyFrancois Provost, CEO of Renault Group, has reiterated that there are no plans to replicate the Brazilian partnership model, in which Geely of China holds a 26 per cent stake, here in India.
“There is no such project. Today, it is important to be focused. My priority in India is to deliver India for India for the Renault brand with our technology,” he told ET Auto during a roundtable discussion in Chennai.
Last November, Geely acquired a 26.4 per cent stake in Renault do Brasil, which would allow it to expand quickly in the market. The French automaker, in turn, intended to use Geely’s GEA new-energy architecture to extend its lineup with zero-emission vehicles.
According to Provost, when it came to partnerships, he went by three “very simple” principles. One, the strategy of Renault was a standalone model. The company’s FutuREady plan was one where it was not dependent on anyone.
“Two, in Europe, our core market, we have a full set of independent technologies. And thanks to our competitiveness, we attract partners like Nissan, Mitsubishi, and now Ford,” he continued. Renault and Ford have joined hands to make two distinct Ford-branded electric vehicles in Europe.
We are with Geely in South Korea and Brazil. I support Nissan for exporting from India to the worldFrancois Provost
Being flexible with partnerships
According to Provost, the third principle, outside Europe and when it made sense, was being open to working with partners. “We are with Geely in South Korea and Brazil. I support Nissan for exporting from India to the world,” he said. This was a practical approach, “each time, sharing resources to the benefit of Renault and speeding up my growth”. In any case, it is difficult for Chinese automakers to access the Indian market following the military clash at the Ladakh border during the Covid pandemic in 2020. As relations between the two countries worsened, companies like Great Wall Motors shelved their plans for India.
Also Read: Renault to cut up to 2,400 engineering jobs globally as Chinese automakers reshape competition
Today, companies like SAIC have divested a part of their equity to the JSW group, while Leapmotor will make an entry through the Stellantis group, which acquired a 20 per cent stake in the Chinese company. Renault and Geely do have a deep relationship, but the CEO made it clear that this would not include any foray into India, at least for now.
As part of the FutuREady strategy, India would remain a standalone plant in Chennai with no intention of seeking a partner. “We have the capacity in the plant. I spent one week here to review everything,” said Provost. The idea was to ensure that the Indian leadership team was well-equipped to deliver on the plans laid out between now and 2030.
They are one team, completely focused and have the full delegation to deliver the product at the speed of India for the people here along with accountabilityFrancois Provost
Single point of contact
The fact that the India for India mantra is an imperative going forward is borne out by the fact that there is now a single CEO, Stephane Deblaise, in charge of the whole value chain with a strong Indian executive team.
“They are one team, completely focused and have the full delegation to deliver the product at the speed of India for the people here along with accountability,” said Provost. This, according to him, was a “main change” compared with the past when Renault was “too much scattered” and lost some momentum in the market.
“This is why we have to be very humble towards our customer. If we focus on what we are capable of doing well as Brand Renault with a local Indian team that is fully committed and dedicated, there is no reason not to enjoy the growth of this market,” he added.
Strong localisation remains an important part of the renewed strategy. However, the Renault CEO said he remained “cautious” about exporting cars from India to Europe, given the ongoing geopolitical tensions in West Asia and Europe, where wars continue to dominate headlines.
This is because we lead the trend in Europe and have the best full hybrid technology worldwide. It is what I think we need to localiseFrancois Provost
Also Read: Renault eyes €2 billion annual exports from India by 2030 under futuREady plan
High potential for exports from India
“However, there are a lot of technologies and components which could be considered. “For instance, what the team here will do in terms of connectivity, I have the opportunity to export this to South America, because it is the same platform and I can upgrade in a speedy way, competitive way,” said Provost.
Right from Argentina, Colombia and Brazil to Morocco, Turkey and Romania, the India for India focus is expected to deliver significant competitiveness within the Renault Group, which puts in perspective why the €2 billion annual exports target by 2030 is achievable.
The key, continued Provost, was to have sustainable, long-term growth in India so that it could emerge as among the top three markets for Renault worldwide. “My strategic target in this market is to reach five per cent market share as soon as possible,” he said.
In his view, India epitomised technology, value and speed. “Your country has a high ambition level in terms of automotive. I want to be part of it and contribute as a good citizen here. This will also help our competitiveness outside India,” explained Provost.
As for fuel options, Renault continues to be “very strong” in ICE (internal combustion engine) but can also provide “a clear value” to Indian customers for EVs. “This is because we lead the trend in Europe and have the best full hybrid technology worldwide. It is what I think we need to localise,” he said.
