Daijiworld Media Network - New Delhi
New Delhi, Oct 18: Renault Group India expects strong hybrid vehicles to eventually capture at least the same share of the country's passenger vehicle market as CNG-powered cars, citing their fuel efficiency, lower emissions and freedom from external charging requirements.
Renault Group India CEO Stephane Deblaise said on Sunday that strong hybrids could become a significant part of India's automotive market as consumers seek more fuel-efficient alternatives without the charging constraints associated with battery electric vehicles (BEVs).
“I don't see how a country such as India can avoid having a big number of strong hybrids,” Deblaise said, adding that the company would welcome greater government incentives to encourage their adoption and help reduce emissions.
According to data from the Federation of Automobile Dealers Associations (FADA), CNG vehicles accounted for 25.28 per cent of India's passenger vehicle retail sales in August 2026, compared with 21.47 per cent a year earlier. Hybrids, including mild and strong hybrids, accounted for 9.04 per cent, up from 7.96 per cent during the same period last year.
A separate analysis of Vahan registration data puts the combined share of strong hybrids and plug-in hybrids at around two per cent of passenger vehicle retail sales in 2025-26.
Asked whether strong hybrids could gain a substantially larger market share than electric vehicles over the next two to three years, Deblaise said their growth would depend on the number of automakers introducing the technology and the availability of tax incentives. He expects strong hybrids to eventually achieve at least the same market share as CNG vehicles.
Renault on Saturday launched the Duster Strong Hybrid E-Tech 160, marking the introduction of its strong-hybrid powertrain in India. The company has announced an Automotive Research Association of India-certified fuel efficiency of 29 km per litre for the SUV.
Deblaise said promoting strong hybrids would make sense if the objective was to improve public health and reduce carbon dioxide emissions.
Beyond the hybrid launch, Renault is preparing nearly 10 major product and powertrain announcements over the next 12 months. The plans include new engines and gearboxes, CNG options for the Triber and Kiger, and an expansion into larger sport utility vehicles (SUVs) and more electrified models. The company is also considering launching a battery electric vehicle in 2027 or 2028.
Renault expects to achieve double-digit annual sales growth, although Deblaise declined to disclose specific sales targets. He said the company was focused on building sustained growth rather than recording a strong year followed by weaker performance. Renault would not artificially push sales to achieve a particular market-share target, he added.
The company's turnaround strategy involves moving beyond its traditional entry-level positioning, built around the Kwid, Triber and Kiger. Renault plans to expand into higher-priced segments with the Duster, the upcoming Bridger and a larger seven-seater SUV.
“Until now, we had only one platform,” Deblaise said, referring to the CMFA architecture that underpins its entry-level models.
Renault now has two platforms: the Renault Group Entry Platform (RGEP), an updated version of CMFA designed to accommodate new technologies and powertrains, including CNG, and the Renault Group Medium Platform (RGMP), introduced with the Duster to support hybrid and other electrified vehicles.
The strategy is expected to move Renault from vehicles priced at around Rs 7 lakh towards models costing approximately Rs 16 lakh. Deblaise said the challenge was not merely to launch new products but also to offer better value and attract customers in segments where the company has had a limited presence.
He also identified the Rs 9 lakh-Rs 15 lakh price bracket as a major growth opportunity, estimating that it accounts for more than one million vehicles. According to him, sales of cars priced above Rs 10 lakh have risen by around 40 per cent over the past five years.
Renault is simultaneously reviewing its dealership network, prioritising customer experience and improved facilities over a substantial increase in the number of outlets. The exercise began around 18 months ago and includes evaluating locations, upgrading showrooms, relocating dealerships and closing outlets in unsuitable locations.
The cost of improvements ranges from Rs 25 lakh for limited upgrades to Rs 1.25 crore for extensive refurbishment. Digital upgrades can cost around Rs 25 lakh, while light refurbishment may require about Rs 50 lakh and more comprehensive work around Rs 1 crore, Deblaise said.
Renault aims to complete the main phase of dealership improvements by the end of 2027, although the process will continue thereafter. The company is also investing in salesperson training and retention.
“We will increase our dealers a little bit, but not a lot. This is not our main intention. Our main intention is to make it better,” Deblaise said.