French auto major Renault Group has inaugurated its new Renault Design Centre in Chennai, as part of its new India-centric transformation strategy – renault. rethink.

The new design centre further strengthens the company’s ‘design in India’ and ‘make in India’ strategy. It is also expected to function as a hub of excellence, particularly due to its proximity to Renault Nissan Technology & Business Centre India (RNTBCI).

Laurens van den Acker, Chief Design Officer, Renault Group, said, "India is highly unique and locally driven. Having a dedicated design studio is essential to understanding its nuances, listening to its needs and building from its strengths. The Renault Design Centre Chennai will focus on developing models and concepts tailored to the Indian market while contributing to Renault Group’s global projects. By leveraging local talents and insights, this centre will play a key role in shaping Renault’s future mobility solutions. Its strategic location - at the heart of RNTBCI’s excellence hub - also enables closer collaboration across functions and faster integration of design into our engineering and innovation processes.”

Renault shared that the year 2025 marks an inflection point for the automaker in India, as it gears up to strengthen its presence in the world’s third-largest automobile market.

Venkatram Mamillapalle, Country CEO and Managing Director, Renault India Operations, said, "The launch of the 'renault. rethink' strategy heralds a new era for Renault in India. We are proud to be the most Indian of European carmakers, boasting the largest R&D centre, manufacturing unit, highly localised supply chain and now one of the largest design centres. The opening of new design centre in Chennai will play a crucial role in the deployment of the Renault International Game Plan 2027. Our commitment is to redefine our brand, product positioning, and customer experience to meet the evolving needs of our customers in the country, hence we recently witnessed the global debut of new ‘R store’ in Chennai, India."

It has renewed its commitment for India with a 90 percent localisation target, and the recent takeover of the alliance’s manufacturing plant RNAIPL.

In 2024, Renault Group clocked a record EUR 4.3 billion in profit, which is 7.6 percent of its revenue, and saw its revenue grow to EUR 56.2 billion, up 7.4 percent YoY.

Design & Engineering in India

At present, Renault Group’s Chennai R&D centre is one of its largest globally, with around 10,000 engineering working on global and local projects. Now, the Renault Design Centre Chennai extends over 1,500 metre and is equipped with the latest technologies. It features a high-tech environment designed for 3D model evaluation and virtual reality experiences, a next-generation visualisation studio, a creative collaboration zone, high-performance LED wall, advanced VR integration and a harmonious blend of European and Indian Design.

“renault. rethink is more than a sculpture – it’s a bold expression of Renault’s vision for India. It symbolises our commitment to innovation and to designing cars in India, for India. This artwork captures the energy of a nation in motion, a future taking shape, and Renault’s ambition to be part of this exciting journey,” stated Acker.

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As global industrial markets navigate a landscape of currency volatility and cooling regional economies, the Freudenberg Group is pivotally positioning India as a primary ‘shining star’ for its future growth.

With nearly 40 percent of its Indian revenue tied to the automotive sector, the German technology giant is doubling down on localisation, EV transitions and strategic inorganic growth to solidify its regional presence.

While the Group’s global sales saw a modest contraction of 1.8 percent in 2025, totalling EUR 11.73 billion due to softening exchange rates, Freudenberg India defied the downward trend. The Indian arm reported robust sales of INR 44.27 billion, maintaining healthy double-digit operating margins across its eight business groups.

G Sivasailam, Director & CEO of Freudenberg Regional Representative in India, noted that the country has consistently performed stronger than the global average, emerging alongside China as a critical growth engine within the Group’s international strategy.

Automotive remains the bedrock of Freudenberg’s India operations, contributing roughly 40 percent to 42 percent of total revenue. The company’s portfolio is deeply embedded across the value chain, ranging from sealing solutions and vibration control to filtration and surface technologies.

This diversification has provided a buffer against fluctuations in specific vehicle segments, allowing the company to thrive as passenger vehicle demand gains momentum while maintaining a steady supply to Commercial Vehicle OEMs, which account for 70 percent of that specific segment.

As the industry pivots toward electrification, Freudenberg is aligning its product roadmap to bridge the gap between legacy internal combustion engines and emerging EV technologies.

Sivasailam highlighted that while EVs eliminate certain engine-related components, they create complex new requirements in areas like lightweighting, thermal management, and noise profiles. To address these, the company is deploying advanced material science, including critical battery separators designed to ensure safety and prevent thermal events.

Although large-scale local manufacturing for certain EV components is currently served by global capacities in Europe, R&D continues to evolve to meet the specific needs of the Indian market.

A cornerstone of Freudenberg’s success remains its aggressive localisation strategy. With a manufacturing footprint spanning Chennai, Pune, Mysore, Chandigarh and Anand in Gujarat, the company prioritises producing for the local market over simple labour arbitrage. This domestic focus has effectively insulated the business from global supply chain disruptions and geopolitical uncertainties. While exports currently account for about 10 percent of total output, the primary focus remains on capturing the rising consumption and demographic advantages within India.

Looking toward the 2027–2029 strategic cycle, Freudenberg India is signalling an openness to expansion beyond organic growth.

Following a global precedent where the Group invested EUR 800 million in acquisitions during 2025, the Indian leadership is actively scouting for mergers and acquisitions to bolster its technical capabilities.

By evolving from a traditional component supplier into a provider of integrated solutions, Freudenberg aims to meet the growing demand from OEMs for fewer, more sophisticated partners. With a strong foothold in innovation and a clear focus on sustainability, the company appears well-positioned to play a defining role in India’s evolving mobility landscape.

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The Light Electric-Vehicle Acceleration Forum (LEAF), an industry body association initiated by Hero MotoCorp, Ather Energy and IPEC, to accelerate the adoption of electric two-wheelers and three-wheelers in India. The forum was inaugurated by H D. Kumaraswamy, Union Minister for Heavy Industries & Public Enterprises.

LEAF serves as a neutral platform bringing together original equipment manufacturers (OEMs), charging infrastructure operators and technology providers. The consortium focuses on advancing interoperability across fragmented charging networks to standardise the user experience.

A primary technical focus for the forum is the implementation of LECCS (Light Electric Combined Charging System), which is approved by the Bureau of Indian Standards (IS 17017 Part 2/Sec 7) as a ‘Type 7’ connector supporting both AC and DC charging. It enables unified communication and roaming capabilities, allowing vehicles from different manufacturers to utilise the same public infrastructure.

The forum was founded through a Memorandum of Understanding (MoU) between three entities: Hero MotoCorp Limited (via its Emerging Mobility Business Unit), Ather Energy and IPEC India.

At launch, the consortium included over 20 member organisations, including vehicle manufacturers, charge point operators and software providers. The founding members constitute the initial steering committee, with plans to expand membership in the coming months.

The founding members, Kausalya Nandakumar (Hero MotoCorp), Ravneet S Phokela (Ather Energy), and Zohra Khan (IPEC India), said, “EV adoption in India has reached an inflection point, and the next phase of its growth will depend on how effectively the industry addresses charging anxiety, as users navigate fragmented networks and inconsistent experiences. Delivering a seamless and interoperable charging experience at scale will require alignment on shared approaches, which LEAF aims to enable. We believe India has the potential to emerge as a global leader in light electric mobility, and initiatives like LEAF are key to unlocking this potential by building a more cohesive and scalable public charging ecosystem.”

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Czech automotive brand Skoda Auto, one of the world’s oldest automotive brands and part of the Volkswagen Group, is set to exit China.

Skoda Auto has been struggling in the Chinese market with sales bottoming out at 15,000 units in 2025, from its peak of 341,000 in 2018, marking just a 0.1 percent market share in the world’s most competitive market. 

Volkswagen Group has confirmed that Skoda Auto will exit China by mid-2026 and turn its focus on key growth markets such as India and Southeast Asia.

The Czech automaker had established its presence in China nearly two decades ago, selling more than 3 million vehicles. Its parent company Volkswagen Group has had an aggressive focus in the country with nearly 40 plants, 50 million customers and its biggest Research & Development facility outside Germany.

In a statement to the media, Volkswagen Group China, stated “For Skoda customers in China, warranty and aftersales services will remain fully available.” Thus, giving some sense of security for existing customers.

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ICRA has reported that India’s automobile sector is expected to experience a moderation in growth during FY2027. This follows a period of expansion in FY2026 driven by GST rationalisation and resilient economic activity. While policy changes improved affordability in the two-wheeler segment and enhanced fleet economics for commercial vehicles, growth rates are projected to normalise against a higher base.

The CV segment led the recent industrial upcycle, supported by infrastructure activity and GST rate cuts. Domestic wholesale volumes increased by 12.5 percent YoY during the first 11 months of FY2026, while retail volumes rose by 28.9 percent in February 2026.

Segment Forecasts:

• FY2026: Growth is expected to exceed previous estimates of 7-9 percent.
• FY2027: Growth is projected to moderate to 4-6 percent.
• Constraints: High funding costs and a consumer preference for pre-owned light commercial vehicles (LCVs) may limit near-term expansion.

The two-wheeler segment recorded a recovery in FY2026, with retail volumes growing by 11.5 percent in the 11M FY2026 period. This was supported by improved rural demand and financing availability following GST cuts for motorcycles and scooters below 350 cc. ICRA expects wholesale growth to slow from 9 percent in FY2026 to 3-5 percent in FY2027.

The auto component sector is forecast to grow by 7-9 percent in FY2027, driven by premiumisation and replacement demand. The industry plans a capital expenditure of INR 280 billion to INR 320 billion for the year, focusing on capacity expansion and electrification. While internal accruals will fund most investments, debt reliance may increase for battery cell localisation projects.

ICRA noted that while direct export exposure to West Asia is limited for component players, indirect risks exist. Approximately 25-30 percent of India's passenger vehicle exports are linked to West Asian markets, and disruptions there could affect component demand. Other monitorables include supply-chain volatility, energy costs and currency fluctuations.

‘The broad-based recovery seen in FY2026 has largely been policy-driven, particularly due to GST rationalisation, which improved affordability and demand sentiment across segments. Growth is expected to normalise in FY2027, given the higher base and emerging challenges from global uncertainties and input cost pressures. That said, continued investments in electrification, steady replacement demand and improving rural incomes are expected to support the sector over the medium term,’ the company noted.

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