Fabrice CamboliveRenault said the proposed India–European Union Free Trade Agreement (FTA) could significantly strengthen its manufacturing and export strategy in India, positioning its Chennai facility as a key global hub for vehicles and auto components. With tariff barriers expected to moderate, the French automaker aims to leverage higher localisation, expanded component exports, and new model production to drive volumes—a shift that could help it move towards profitability.
On the day the much-awaited India–EU FTA firmed up, Fabrice Cambolive, chief growth officer of the Renault Group and CEO of Renault brand, told TOI: “An FTA between Europe and India can be a real win-win. It opens up two-way trade in vehicles and parts, and with our strong European base and growing Indian footprint, we are well positioned to benefit.”
Cambolive, who was in India to unveil the company’s new Duster SUV—what the company describes as one of the biggest launches ever undertaken by any automotive company in the world—said the share of exports in India’s current car production will rise from the present 20 per cent once the agreement becomes operational. Greater clarity on taxation trajectories and implementation timelines, however, is still awaited.
As the French carmaker hopes to resurrect its sales and market share in India to 3–5 per cent by 2030—down from around 3 per cent earlier to less than 1 per cent now—the most tangible early gains from the FTA are expected to come from auto components rather than finished vehicle imports. “The agreement will sharply improve the competitiveness of Indian-made components in Europe,” said Venkatram Mamillapalle, managing director of Renault India.
He added that every OEM, whether selling high-end or mass-market vehicles, will benefit, as cars manufactured in Europe will increasingly use auto components made in India.
Meanwhile, Renault already produces several powertrain components in-house, creating a pathway for boosting component exports once duties are cut.
Cambolive pointed out that, going forward, hybrid technology, advanced connectivity, expanded engine options, and alternative fuels—including CNG—will form the backbone of Renault’s India portfolio.
