The electric vehicle (EV) market is witnessing a significant shift as automakers worldwide are investing heavily in the development of new models. One such automaker alliance, Renault-Nissan, has recently been reported to be planning a new electric SUV which can rival the Hyundai Creta EV.
Renault-Nissan’s EV Strategy
Renault-Nissan has reportedly dropped plans for an entry-level A-segment EV and is now focusing on a Creta-sized electric SUV. The new EV is expected to be based on the CMF-B EV platform, which is being tweaked from the standard CMF-B architecture to support EV powertrain. The upcoming combustion-engined Renault Duster SUV and its Nissan derivative will also be based on the heavily localized CMF-B platform.
The alliance is targeting a price range of around INR 15 lakh to INR 20 lakh for its EVs. To achieve this, there is a significant emphasis on localization and local development by its R&D center, the Renault Nissan Technology Business Centre India1. The vehicle is likely to be powered by an LFP battery and may have a range of 300 km per charge.
Market Analysis
The EV market is at an inflection point, with EVs accounting for about 5% of total vehicle sales between October 2022 and September 2023. They could reach more than 40% penetration by 2030. However, several structural challenges need to be addressed to spur increased EV adoption, such as higher pricing compared to internal combustion engine vehicles, range anxiety, limitations in charging infrastructure, and friction in customer financing.
The Hyundai Creta EV is expected to launch in India in September 2024. It is anticipated to be equipped with a 150bhp motor and offer a range of 400-450km on a single charge. The expected price range is INR 22.00 – 26.00 Lakh. The Creta EV will feature climate control, touchscreen infotainment system, digital instrument cluster, Level 2 ADAS, 360-degree camera, power front seats, six airbags, and a powered tailgate.
Will Renault-Nissan Succeed?
Given the current market trends and the detailed plans of Renault-Nissan, it seems that the alliance is well-positioned to compete in the EV market. However, success will depend on several factors, including the final product’s performance, pricing, and the evolution of the EV market in the coming years. The alliance’s focus on localization and the development of a competitive product indicates a strong commitment to succeeding in this endeavor.
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