Renault India, the leading European car brand in the country, has achieved a significant milestone by surpassing $1 billion in turnover in FY2023. The company’s strong operational performance can be attributed to factors such as an improved product mix, optimized costs, increased exports, and enhanced aftersales revenues.
With the success of models like the Kwid, Triber, and Kiger, Renault India witnessed a 16% growth in turnover, reaching approximately Rs 8612.5 crore or $1 billion. Moreover, the company reported profits for the second consecutive year, amounting to Rs 403.5 crore or $48.52 million, which is 21% higher than the previous fiscal year.
Renault India’s profitability can be attributed to the better model mix of available variants, aligning them with customer preferences and aspirations. Additionally, the company experienced a notable increase in export volumes and benefited from a stronger aftersales business contribution.
Despite the challenges posed by the global semiconductor crisis and material shortages, Renault India maintained a market share of 2% in the passenger vehicle market, with sales totaling 78,926 units in FY2023. The company acknowledged that its growth rate in 2023 was affected by these challenges, which impacted production capacity.
In FY2023, India’s domestic passenger vehicle market witnessed a remarkable 27% growth, reaching a record 3.89 million units. Exports also saw a 15% increase, with 662,891 units shipped overseas. Renault India played a significant role in this growth, exporting 34,956 units, a 45% year-on-year increase compared to FY2022. As a result, the company’s export market share improved from 4% to 5% during this period.
To regain lost market share, Renault India is actively working on refreshing its product portfolio. The company addressed the challenges faced in FY2023, including raw material shortages and supply chain disruptions due to the China-Covid crisis, which led to a significant increase in raw material prices. Furthermore, the implementation of the more stringent BS-VI Phase II emission norms resulted in up to a 5% increase in vehicle prices from April 1, 2023.
Renault India recognizes the evolving mobility landscape driven by the ACES mega trend—autonomous driving, connected cars, electrified vehicles, and shared mobility. The company emphasized the need for supporting infrastructure for electric vehicles (EVs) to boost sales, highlighting that currently, EVs account for 2.5% of new car sales globally.
Renault India is optimistic about the government’s initiatives to promote green mobility, such as the allocation of Rs 35,000 crore for energy transition and the reduction of customs duty on lithium-ion cells. The company believes these measures, along with the extension of subsidies on EV batteries, will stimulate demand.
As the largest European brand in the Indian market, Renault, along with its Alliance partner, is gearing up for the future by investing over Rs 5,300 crore in the next five years. The group aims to produce 350,000 cars per year in India by 2026 and plans to introduce new midsize SUVs and EVs to cater to the growing demand for premium vehicles among Indian buyers.