Renault Group India expects strong hybrid vehicles to eventually command at least the same share of India’s passenger vehicle market as compressed natural gas (CNG)-powered cars, as the former offer lower fuel consumption and emissions without the need for external charging, its chief executive officer (CEO), Stephane Deblaise, said on Sunday.
“I don’t see how a country such as India can avoid having a big number of strong hybrids,” he said, adding that hybrids allow customers to enjoy an electric driving experience without the charging constraints of battery electric vehicles (BEVs). He also said Renault would welcome greater government incentives for strong hybrids to encourage their adoption and reduce emissions.
CNG-powered vehicles accounted for 25.28 per cent of India’s passenger vehicle retail sales in August 2026, up from 21.47 per cent a year earlier, according to data from the Federation of Automobile Dealers Associations (Fada). Hybrids, including mild and strong hybrids, accounted for 9.04 per cent of sales in August, up from 7.96 per cent a year earlier.
A separate analysis of Vahan registration data puts the combined share of strong hybrids and plug-in hybrids at around 2 per cent of passenger vehicle retail sales in 2025-26.
Asked whether strong hybrids could gain a significantly larger share of India’s passenger vehicle market than electric vehicles over the next two to three years, Deblaise said their growth would depend partly on how many automakers introduced the technology and the kind of tax incentives available. He said he expected hybrids to eventually account for at least as much of the market as CNG vehicles.
“Big amount, I don’t know how much it will reach, but… it would be at least the same level as CNG,” he said.
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 (ARAI)-certified fuel efficiency of 29 km per litre for the SUV.
“If the intention really is to have better health of the population and lower carbon dioxide emissions, it makes sense to push strong hybrids,” he said.
Beyond the hybrid launch, Renault is preparing nearly 10 major product and powertrain events over the next 12 months, Deblaise said. The company plans to introduce new engines and gearboxes, add CNG options to the Triber and Kiger, and expand its range towards larger sport utility vehicles (SUVs) and more electrified vehicles. It is also considering the introduction of a BEV in 2027 or 2028.
“Every year we will sell much more cars than the year before. We expect to see two digit growth,” Deblaise said, while declining to disclose absolute sales targets for the coming years. He said Renault wanted to build steady growth rather than achieve a strong year followed by a weak one, adding that the company would not push sales artificially to meet a particular market-share target.
The turnaround strategy involves moving beyond Renault’s traditional entry-level positioning. The company has so far relied on the Kwid, Triber and Kiger, but is now looking to expand into higher-priced segments through 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 underpinning its entry-level models.
Renault now has two platforms: the Renault Group Entry Platform (RGEP), an updated version of CMFA intended to support new technology and a wider range of powertrains, including CNG, and the Renault Group Medium Platform (RGMP), introduced with the Duster and intended for hybrid and other electrified vehicles.
The shift is expected to move Renault from vehicles priced around ₹7 lakh towards products priced around ₹16 lakh. Deblaise said the challenge was not just to introduce new models but to provide better value and attract customers in segments where Renault has had a limited presence.
The company is also reviewing its dealership network, with a focus on improving customer experience rather than significantly increasing the number of outlets. The exercise began around 18 months ago and involves assessing locations, upgrading facilities, relocating some dealerships and closing poorly located ones.
The cost of improvements can range from ₹25 lakh for limited work to ₹1.25 crore for more extensive refurbishment, Deblaise said. He added that digital upgrades alone could cost around ₹25 lakh, while a light refurbishment could cost about ₹50 lakh and more extensive work around ₹1 crore.
Renault hopes to complete the main push by the end of 2027, although Deblaise described dealership improvement as an ongoing process. 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,” he said.
Deblaise also identified the ₹9 lakh-₹15 lakh price band as a significant opportunity for the company. He estimated that the segment accounts for more than 1 million vehicles and said sales of cars priced above ₹10 lakh had increased by around 40 per cent over the past five years.
