Published by Global Banking & Finance Review®
Posted on January 23, 2026
5 min readLast updated: January 23, 2026
Add as preferred source on GoogleRenault is set to revive its Indian market presence by reintroducing the Duster SUV, focusing on premium models to target the growing middle class.
By Gilles Guillaume and Aditi Shah
PARIS/NEW DELHI, Jan 23 (Reuters) - France's Renault is banking on the cult following of its Duster SUV to help revive its Indian business, bringing back a nameplate that had better brand-recognition than the automaker itself before regulatory change led to its demise.
The smallest by sales of so-called legacy automakers plans to elevate its line-up to more premium models under new CEO Francois Provost, who is tasked with growing Renault globally as Chinese rivals make inroads into its core European market.
Under the strategy, which has not previously been reported in detail, Renault will target wealthier rather than entry-level drivers as it seeks to recover market share that has dwindled over the past decade to less than 1% from a high of 4%.
It will begin on January 26 - India's Republic Day - by unveiling a Duster built to current safety and emission regulations as well as latest tastes and needs, Reuters has learned in interviews with Provost as well as five company sources and suppliers. That will be followed by a larger SUV like its Dacia Bigster and an electric vehicle, sources said.
"Previously, our strategy was to offer a car to all Indians. That is not my strategy," Provost, CEO since the summer when Renault lowered its profit forecasts, said in an interview. "I am targeting the middle class, which is growing in India and wants competitively priced but attractive cars."
Renault will also begin sourcing components in India for vehicles built in other markets, mainly South America, Provost said, akin to peers such as Stellantis, Volkswagen and Honda.
The automaker now has full ownership of a factory in southern India that it once shared with Nissan and which has an annual capacity of 500,000. It will continue building cars for Nissan until 2032 and is evaluating the potential for export.
INDIA SET FOR GROWTH SURGE
The India revival is aimed at increasing sales beyond Europe. Last year Renault derived almost 70% of sales from the slow-growing region, made increasingly competitive with the influx of Chinese entrants such as EV leader BYD.
Renault has launched a number of bestselling vehicles in recent years but profit margin pressure has weighed on its share price, dragging its valuation to around 10 billion euros ($11.69 billion), less than half that of Stellantis.
Last year, the French carmaker lifted non-European sales by nearly 12% by expanding in Latin America and South Korea. However, prospects in India could be even greater.
Sales in the world's third-largest car market are set to touch 6 million by 2030, up 36% from 2025, S&P Mobility data showed, with a rapid increase in demand for SUVs and premium vehicles. That forecast takes into account tough investment rules that shut out Chinese carmakers.
"Renault needs to solidify its market share in its high-growth markets," said Alexis Albert, equity fund manager at DNCA Finance, a Renault investor. Mature markets like Europe are unlikely to grow significantly, he said.
RISE OF THE SUV
Renault entered India in 2005 and had its first hit in 2012 as the competitively priced Duster SUV stood out in a market dominated by hatchbacks and sedans.
By 2016, it held 4% of the passenger vehicle market, making India one of its top 10 locations. However, it pulled the Duster almost five years ago, baulking at the cost of bringing it in line with new emissions standards.
In the meantime, India has seen a raft of SUVs from domestic makers such as Mahindra & Mahindra and Tata Motors, as well as South Korea's Hyundai Motor <HYUN.NS>.
The category accounts for more than half of the Indian market versus 10% when the Duster first launched, Renault said.
"This will be Renault's third attempt" at making a splash in India after the Duster and ultra-low-cost Kwid, said former Nissan COO Andy Palmer. "I think four times would be beyond everybody, because then everybody knows that you're not serious about doing it properly."
MAKE OR BREAK
Renault plans to at least double its India line-up, which consists of the Kwid and small cars Kiger and Triber.
Sales of the Duster are likely to begin in February and will be available with a hybrid powertrain for the first time in India, said one of the sources, who all declined to be identified as they were not authorised to speak with media.
Considering the faith placed in the Duster name, that SUV represents a make-or-break proposition, the person said.
Renault expects Duster production to reach 130,000 to 140,000 vehicles annually, three suppliers said, potentially more than tripling its 2025 India sales.
Like all automakers, Renault needs to update or introduce new models every six months to keep customers engaged, said S&P Global auto analyst Gaurav Vangaal. There is also the need for "an aggressive sales strategy supported by a robust customer follow-up process" to keep the momentum going, he said.
Under its broader international game plan, Renault said it will spend 3 billion euros by 2027 launching Renault-brand models in India, Latin America, South Korea, Turkey and North Africa. It declined to comment on how much it will commit only to India, a market where rival Suzuki plans to invest $8 billion and Hyundai $6 billion.
Provost, a 57-year-old insider who previously ran operations in Russia, South Korea and China, said capturing even a small slice of the Indian market would be a game-changer for Renault.
"I would be delighted to achieve 5% of a 6 million car market," Provost said.
(Reporting by Gilles Guillaume and Aditi Shah; Additional reporting Nick Carey in London; Editing by Dominique Patton, David Dolan and Christopher Cushing)
The Duster SUV is a compact sport utility vehicle produced by Renault, known for its affordability and practicality, making it popular in markets like India.
Market share refers to the percentage of an industry's sales that a particular company controls. It indicates the company's competitiveness in the market.
Sales projections are estimates of future sales revenue, often based on historical data, market analysis, and economic conditions.
An electric vehicle (EV) is a type of vehicle that is powered by electric motors, using energy stored in rechargeable batteries instead of traditional fuel.
Explore more articles in the Finance category
