French automaker giant Renault presented its “International Game Plan 2027” in line with its Renaulution in Rio De Janeiro, Brazil, last week. The brand announced its commitment to an investment of EUR 3 billion (over Rs. 26 crore) to launch 8 new models by 2027 in markets outside Europe.
According to the company, it aims to double the net revenue per unit sold outside Europe in 2027, as compared with 2019. Renault’s International Game Plan 2027 is a bold and ambitious strategy that has the potential to transform the brand into a major player in the global automotive market.
The Loss of Russia and a New Focus on Global Markets
The loss of Renault’s second-largest market, Russia, due to geopolitical events surrounding the Russian invasion of Ukraine, resulted in the brand overly relying on the European market. In the initial nine months of 2023 after leaving the Russian market, Renault found that nearly 69 percent of its sales were concentrated in Europe, a big increase from 63 percent in the previous year.
This overreliance on the European market has made the automaker vulnerable to economic downturns in the region. In order to reduce its risk and expand its reach, Renault is focusing on growing its sales in other markets, such as Latin America, North Africa, Turkey, South Korea, and India.
Renault New Modular Platform for Global Markets
A big highlight of the brand’s plan is the new modular platform is ultra-flexible and multi-energy, which will allow the company to produce a wide range of vehicles at scale. The platform is designed to accommodate a variety of powertrains, including internal combustion engines, hybrid powertrains, and electric powertrains. It can also be used to produce vehicles of different sizes and body styles.
The new platform features an adjustable and flexible architecture which allows for a large diversity concerning:
- Vehicle length, between 4 and 5 meters
- Wheelbases, with 4 options from 2.6 to 3 meters
- Rear units with 3 lengths
- Energy sources and new powertrains, aiming at more efficiency regarding consumption and CO2 emissions: ICE, flex-fuel (E100), LPG, mild hybrid advanced (48V), and full hybrid, for front-wheel and four-wheel drives.
The new platform will be used to produce a variety of new models for Renault’s global markets. These models will include SUVs, pickup trucks, and sedans. The platform will also be used to produce electric vehicles. The B-segment SUV Kardian based on this platform, which will enter the market in Latin America and Morocco next year is the first of the eight production models to be unveiled.
Partnership with Geely for D & E-Segment Models
Renault has partnered with Geely Holding Group, the Chinese multinational automaker, to develop a new platform for D and E-segment models. The platform, called the Compact Modular Architecture (CMA) is a proven platform that is well-suited for developing high-end vehicles. It is also compatible with a variety of powertrains, including hybrid and electric powertrains.
Renault Korea Motors, Renault’s South Korean subsidiary, will develop the first Renault vehicle on the CMA platform. This vehicle is expected to be launched in the coming years.
Focus on Hybrid and Electric Vehicles
Renault is committed to reducing its CO2 emissions and developing more sustainable vehicles. The company aims to sell one car out of three with an electric or hybrid version outside of Europe by 2027. Renault’s new models will feature a variety of hybrid and electric powertrains. The company is also developing new E-Tech hybrid 4WD technology for its pickup trucks.
Official Statement
“As our product renewal is bearing fruit in Europe, we are now going to make the brand more global and more profitable. Thus, Renault is now going on the offensive outside Europe with eight new vehicle launches between now and 2027, based on a reduced number of platforms, shared across regions and thereby enhancing our synergies.” Said Fabrice Cambolive, CEO, Renault brand.