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After a tough couple of years with weak sales, French carmaker Renault is shifting its gears for a growth phase in India. With a refresh of its entire existing models and the much-anticipated relaunch of Duster SUV expected this year, Renault India is targeting double-digit growth and achieving a market share of 3% by the financial year 2027, according to a senior company official.
“We want a double-digit growth rate. That is what we are working on, with the new product launches. When we finish the first cycle, we should have a double-digit growth. Today I’m at about 1% and we were at 3% once upon a time. I should come to that place, 3% in a year and a half,” Renault India Chief Executive Officer and Managing Director Venkatram Mamillapalle told Autocar Professional.
Renault was once seen as a potential disruptor with its Duster in 2011, which practically kick-started the compact SUV trend, and with Kwid in 2015, which came with an exciting design in the entry-level segment. The automaker’s volume peaked in FY2016–17, when it sold 135,123 units and captured nearly 4% share in the market with these two models.
But Renault struggled to maintain momentum amid a lack of aggressive production expansion. The company did not have a product to compete with popular models like the Creta and Seltos, while the pandemic further exposed and amplified these weaknesses. In financial year 2025, Renault’s India volumes came down to just 37,900 units while the market share contracted to 1%.
However, with limited global options, India is now a linchpin for growth for the French brand. With an investment of Rs 5,400 crore in India, and India has now re-entered the Group’s global growth radar and the company has sharpened its focus on India. This is reflected in Renault taking full control of the Renault Nissan Automotive India Pvt Ltd (RNAIPL), which was a joint manufacturing plant with Nissan.
Renault is also strengthening its product portfolio, initially with facelifts for all its existing models, followed by the Duster and a three-row SUV to cover all segments from A to D in two years. Ahead of the festival season, the automaker launched the facelift of compact SUV Kiger and MUV Triber in a bid to sustain its market share against rivals until the relaunch of the Duster.
India is poised to play a pivotal role in Renault’s product transformation and electrification roadmap with the introduction of the CMF-B modular platform in 2025. This platform will support new B and C segment models aimed at both domestic and export markets—segments where Renault currently lacks scale. In the long term, Renault could also be exploring the Brazil-developed CMF-C platform in India.
Potential GST Cut To Boost Industry Demand
Renault’s growth plans in India come at a time when the domestic market is struggling to sustain its volume growth. Continued weakness in the demand for small cars and high base is expected to result in a flattish kind of growth in this financial year. Automakers have been banking on the festival season demand to stabilize the volumes.
The recent announcement on the review of the Goods and Services Tax (GST) structure, and that relief can be expected by Diwali, came as positive news for the vehicle industry in the long term as the current ICE vehicles are in the highest GST slab of 28%. However, a lack of clarity on the news GST rates has started impacting volumes during the early festival season in late August and early September as Indian consumers often delay big purchases when they anticipate prices might drop.
“GST structure review is a very welcome decision. A potential cut will definitely boost industry volumes and obviously, we will also take our pie on to that. There are a lot of new launches across the industry that are helping; we are also part of it. So I do not see a dip in the market. The market could have gone down, but because of the potential GST benefit that comes in, there will be a boost.”
Media reports say that there could be a sharp cut in the GST rates for vehicles as the government has reportedly proposed moving the GST system to a two-tier rate structure of 5% and 18%, and a 40% slab for a few items. Currently, vehicles fall under the 28% GST slab, and the proposal is reportedly to move small cars and entry-level two-wheelers to the 18% slab in the new structure. ENDS
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