Venkatram Mamillapalle, Managing Director, Renault India.Venkatram Mamillapalle recounts an incident in which one of his colleagues from France landed in India for the Duster unveil in January this year. The immigration official at the airport asked him the reason for his visit, and he replied that he was working for Renault and was here on business.
When that didn’t register, he mentioned Duster, and that just about changed the tone of the conversation.
“The official took 10 minutes interviewing him on the Duster and what new features were going to be part of the SUV. He did not understand Renault, but Duster struck a chord,” the Managing Director of Renault India told ET Auto.
Mamillapalle, who is scheduled to bid adieu by the end of April, is hugely pleased with the return of this iconic brand, which made its India debut way back in 2012. He is even more delighted with the mega Chennai launch that took place on January 26.
You will see a lot of launches coming from Renault at a brisk paceVenkatram Mamillapalle, Managing Director, Renault India
Grand show in Chennai
“I had been thinking about this kind of launch for a long while, and we tried it for Kiger, but unfortunately, Covid came in between. The next option was Duster, and putting up a grand show in a stadium in front of a large crowd was a wish I had nurtured for many years,” says Mamillapalle, who came on board as MD in early 2019. “It was a good gift to me from Renault and a fitting tribute to the Duster brand,” he adds while admitting that there was a “small gap” between the launches of Duster. The truth was that a host of factors played a part in this script.
“In hindsight, Duster could have come earlier, but we had to reckon with Covid, the Russia-Ukraine war, the semiconductor shortage and some challenges for Renault globally. The international game plan was delayed as a result, but now things are in place, and we will see a continuous launch of vehicles in India,” he says.
The engineering centre in India has been “substantially enhanced” in terms of people, skill sets, technology, etc. This will “definitely help” with future launches in terms of quality, timing, and meeting customer needs.
“You will see a lot of launches coming from Renault at a brisk pace,” adds Mamillapalle.
Renault is aiming for a strong comeback driven by new product launches, led by the Renault Duster
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Unique signature on the grill
The topic shifts back to Duster and its “unique signature” on the grill. “It is more than just the nameplate but also keeping its DNA intact on ride and handling, posture and shape as well as the masculinity of the vehicle,” he says.
According to Mamillapalle, kids who remember their parents driving the first Duster will be inclined to continue the family legacy by queuing up for the recent offering. The major DNA of Duster, he continues, is its ground clearance, which has been improved this time.
“Unlike other competitors, we have our own strengths. Renault is known for its powertrain, stability, ride and handling. What we have also given is top-class safety,” he says. The FTA with Europe could also give a boost to imports from India if “we are-cost competitive and right on top in quality”.
Mamillapalle’s seven-year tenure had its share of challenges, including the pandemic, followed by the chip crisis, which “pulled us down very, very quickly”. At that point in time, he had told this writer that these kinds of situations “teach people how to manage and get along while getting your business to be more appropriately fixed in a manner of speaking”.
What is critical now for Renault is to sell volumes, and Duster is the keyVenkatram Mamillapalle
It was more important to keep the whole system active and morale constantly high. It was as relevant to know how to “keep a balance between profits versus people’s morale” while maintaining a good equation with customers and dealer partners.
Leadership changes in Paris
The parent company was also grappling with leadership changes back home in Paris, and all this took a toll on earmarking funds for fresh investments in India. Finally, the long-awaited decision to invest more money was made, and work began on the new Duster.
“Convincing headquarters that India was going to come back strongly was the challenge. We made some mistakes in the past following which Paris lost confidence in the country. After all, you cannot be taking money from HQ continuously and we decided to focus on becoming a little more self-reliant,” he says.
The leadership team in France was more confident when they visited India subsequently, and the buyout of Nissan’s stake in the manufacturing operations also made things smoother. “What is critical now for Renault is to sell volumes, and Duster is the key. I am sure we will win and continue to do all the right things,” adds Mamillapalle.
Today, Renault is looking at India as a major key pillar for its international game plan. “Once we launch a product, we have to see its lifecycle and that is something we missed in the past. I have no qualms in accepting that,” he says.
Renault India also could not spend money on lifecycle changes the way its rivals did. “Today, we have that ability, and this should help us to stay, sustain and grow,” he adds. An analogy is made to the Hindu deities: Brahma, Vishnu and Shiva, while driving home the point of sustaining and growing.
Staying ahead in a tough market
For Renault, the time has come to perform and begin firing on all cylinders in a market that is intensely competitive and served by fastidious customers. Having complete control of the plant, sans Nissan, is important, too, in the revival plan.
As Mamillapalle says, “You should only have one chef in the kitchen since too many can spoil the broth. With Renault Group India, most of the internal issues have been solved with one voice, one leadership and one direction. This will help get the right product at the right time and at the right cost.”
My estimate is that by 2032, we will still have about 60 to 70 per cent ICE engines, with the balance 30 to 40 per cent taken up by hybrids and EVsVenkatram Mamillapalle
However, the fact remains that Nissan’s volumes are also essential to the plant’s viability. The Chennai facility had a capacity of nearly 500,000 units, of which only 45 per cent had been used till the new Duster was launched. Renault is hoping to reach optimal capacity by the end of this decade, which will require a more aggressive pace of new product launches from both Renault and Nissan.
The conversation shifts gears to the Indian car market, which is expected to be in the range of six million units by 2030. “My estimate is that by 2032, we will still have about 60 to 70 per cent ICE engines, with the balance 30 to 40 per cent taken up by hybrids and EVs. This ratio will stay for at least another 15 years unless some global catastrophe happens,” he says.
Turmoil in West Asia
With the war in West Asia intensifying by the day, it remains to be seen how the dynamics will play out in the global automotive industry. India, according to Mamillapalle, will see changes in regulations happening, be it on emissions and safety, over the next two years.
“They will align with Europe because of the FTA. If Indian cars have to go to Europe or the other way around, you have got to be in sync on emissions, safety or any other regulatory requirements. Indian OEMs dealing with Europe will have to adapt because you cannot bring diversity on the assembly lines,” he explains.
Simply put, “you cannot make one car for India” followed by another for Europe with different specifications. To avoid diversity on assembly lines, manufacturers will need to integrate as much as possible.
Evolving with time
“It may not be 100 per cent but the maximum alignment will happen with Europe. With the FTA, the dwell period will take two years after which time we will evolve on regulatory requirements. Both Europe and India will also try to source a lot of parts from each other and, in my opinion, the FTA for automotive will be more beneficial for India,” elaborates Mamillapalle.
European organisations will also benefit from sourcing from a low-cost country with lower duties. By the beginning of the third year, volumes from India will hopefully increase, and the cost structure will become even more competitive for customers in India. New technologies will help grow EVs in India, which can be exported to Europe.
“By this time, we will have EV technology, manufacturing capability, skilled people and a good ecosystem overall. India will have Europe as a channel to push technologies and viability is assured with demand in the domestic market along with exports,” says Mamillapalle.
We can do the same thing in India where we invite Chinese companies to team up with an Indian partner and set up plants hereVenkatram Mamillapalle
According to him, there should be enough safeguards to ensure that the Chinese do not enter the Indian market through Europe. Yet, he continues, doors can be opened to China, but in a very restricted way, especially for technologies which are not available anywhere else in the world.
Building a stronger rapport with China
The Chinese did this many years ago when their government stipulated that any foreign company setting up shop had to enter into a joint venture with a local player for technology transfer.
“We can do the same thing in India where we invite Chinese companies to team up with an Indian partner and set up plants here. It will have to be a win-win situation by the end of the day,” reiterates Mamillapalle.
Why stop with this and also look at extending the idea to the next level, he asks aloud.
“When we are looking for growth, access to other markets is needed. Let us do an FTA with China and look for opportunities to export products. Knowledge can be shared too and starting point for future innovations can happen from a new platform,” signs off Mamillapalle.
