One chef in kitchen, decisions will be quicker, says Renault MD, on Nissan stake acquisition in Chennai plant

Renault India MD Venkatram Mamillapalle said that GST reform is a continuous process for the nation to grow.

With Renault acquiring Nissan's 51% stake in their joint plant in Chennai, Renault Nissan Automotive India Pvt Ltd (RNAIPL), and becoming its sole owner, all the decisions taken to strengthen the company's position in India will be quicker, according to Renault India Managing Director Venkatram Mamillapalle.

As part of its Renault.Rethink transformation strategy, the company has started refreshing its product portfolio in India. It recently launched the new Triber MPV and the new Kiger SUV. The company also offers the Kwid hatchback, with all three of its current products being sub-4 metre models.

While the Triber and the Kiger have been updated, the company will now introduce a B Plus-segment SUV, followed by a C-segment SUV. The two upcoming models will place Renault in over-4 metre category as well, helping it tap into a wider market and customer base.

In the absence of a large product portfolio, Renault has seen its domestic volumes taking a significant hit. From 92,268 units in FY21, the sales dropped to 37,900 units in FY25, according to official data from Society of Indian Automobile Manufacturers (SIAM).

Renault Domestic Volumes

However, with full control of RNAIPL and an investment of Rs 5,400 crore to develop new products under Renault.Rethink transformation strategy, Renault is optimistic about an accelerated expansion in India, which is now the third-largest passenger vehicle (PV) market in the world.

Talking exclusively to Moneycontrol, Mamillapalle said: "There are no two players at RNAIPL trying to take decisions. There is one chef in the kitchen. And now, we have formed Renault Group in India, where you have Stephane Deblaise. We have announced that he is going to be the CEO who will be responsible for the tech centre, manufacturing and the commercial operations, all three together with one person, which was not the case before."

"You had Nissan here, you had Renault there, and then, the decision was going around for each one, whatever was favourable, they used to debate. This does not happen anymore. So any decision will be quick. Product definitions will be quick. Decision-making and activities undertaken by a single entity are often faster than those of multiple entities. All these advantages do come, and your cost advantages or cost reductions also will be a great advantage when you are combining them into one bundle," he added.

Started in 2010, the Chennai plant has an annual production capacity of over 4,00,000 units and caters to both domestic and export markets for Renault and Nissan. While RNAIPL will now be fully consolidated in Renault Group's financial statements, it will continue to produce Nissan vehicles.

When asked about Renault's falling volumes in India, Mamillapalle observed that after fixing European, Korean and Brazilian markets, the company is now focussed on India.

"For a long time in India, I had nothing new, no new product. My products became old. So I started losing my market share. Then we went for Renault.Rethink transformation strategy, where we started investing Rs 5,400 crore from February 2023. So the new Triber is the first product, followed by the new Kiger. And we have two more to come, the B Plus SUV and the C SUV. At present, I am having only sub-4 metre vehicles. But now, I am going to play in the over-4 metre segment as well," he pointed out.

On the Goods and Services Tax (GST) rate rationalisation, Mamillapalle noted that reform is a continuous process for the nation to grow, and ultimately, the consumer gets the benefit.

In the GST 2.0 regime, Renault has cut the price of the Kwid by up to Rs 55,095. The new Triber and the new Kiger have become cheaper by up to Rs 80,195 and Rs 96,395, respectively. The Kwid now starts at Rs 4,29,900 (ex-showroom), the new Triber at Rs 5,76,300 (ex-showroom) and the new Kiger at Rs 5,76,300 (ex-showroom).

On the recent controversy surrounding the use of E20 fuel (petrol blended with 20% ethanol) in E10-compliant vehicles, Mamillapalle said we have not received any serious complaints as of now in Renault cars.

"We are making E20-compliant cars from July-August last year. We do not find any issues. Even if it goes for the next level, maybe E30 or E45, we will be compliant for that as well. And we are an expert. We are using flex fuel in Brazil. For us, it is plug and play. We do not need any re-engineering or innovations. I have the technology. I can just implement it," he added.