India-EU FTA: Renault eyes India as launchpad for European exports

India’s trade deal with the EU will unlock opportunities for carmakers in the country to grow exports to the 27-nation bloc, said Fabrice Cambolive, global CEO for the Renault Brand.

He said while the free trade agreement (FTA) would inject newer automotive technologies into the Indian market, it is also crucial to ascertain whether Europe has the capacity to absorb India-made cars without tariffs.

“What I see is when I'm looking at the level of cars you are able to produce here in India—price, technology—many, many cars could also find a place in Europe,” said Cambolive. “And if it's the case—because we'll know the details in the coming days—it can be really a joining (of) market which will be very interesting for us in terms of automotive to play on both legs.”


While India has agreed to reduce basic customs duties on vehicles to 35% and thereafter to 10%, from the current 70%, EU has said it will eliminate tariffs completely on vehicles imported from India, increasing export competitiveness of Made-in-India cars. Timelines for implementation of this phased duty structure is yet to be notified by the two regions. The FTA is slated to be implemented only in 2027/2028, after detailed technical/ legal review and ratification by both parties.

Cambolive, however, said it does open up possibilities of the French carmaker leveraging its manufacturing base in the country to ship petrol and diesel vehicles back to Europe, going forward.

“It's (using India as a production hub for ICE vehicles for Europe) a possibility,” he said. “In Europe now, the BEV (battery electric vehicle) market is at 17% versus 4.5% in India. When you are at 17%, there is no way back,” he said, adding the company is likely to utilise its capacities in Europe to boost sales of strong hybrid vehicles and BEVs.

He said Renault is exploring opportunities to further expand the share of exports in its total output in India in the mid- to long-term. “I would like to increase this ratio (currently at about 20%),” said Cambolive.

On the Indian market, he termed the country as a “key pillar” in Renault’s global growth plans. The company is looking at introducing multiple new products, including several SUVs, to increase its share in the local market to 3-5% by the turn of the decade.