Renault India is relying on strong-hybrid, compressed natural gas (CNG) and electric vehicle (EV) technologies to meet stricter fleet fuel-efficiency requirements and expand its domestic model range.

The company plans to offer seven models and achieve annual export revenue of EUR 2 billion (US$ 2.24 billion) by 2030.

Stephane Deblaise, CEO of Renault Group India, said the company had the technologies required to comply with the upcoming Corporate Average Fuel Economy (CAFE III) norms, although compliance would depend on customer demand for different powertrain options.

"With the plan we have of HEV, CNG, EVs, all of these technologies, we think we will fulfil the CAFE requirement," Deblaise told media sources.

The comments follow the Ministry of Power's notification of the CAFE III framework on September 29th. The regulations will apply from April 1st, 2027, to March 31st, 2032, replacing the existing CAFE II framework. The reference fleet-average fuel-consumption benchmark is set to tighten from 3.996 litres per 100 km in FY2028 to 3.3273 litres per 100 km in FY2032, representing an improvement of approximately 16.7%. Each manufacturer's actual target will depend on the average weight of its passenger vehicle fleet.

Unlike standards that establish emission limits for individual models, CAFE regulations assess the average fuel consumption of an automaker's passenger vehicle portfolio. Manufacturers can offset less fuel-efficient petrol or diesel models by selling more fuel-efficient vehicles and electrified alternatives.

The new framework includes compliance benefits for different powertrains. Battery-electric vehicles receive a volume multiplier of 3.0 in fleet-average calculations, while strong hybrids receive a multiplier of 1.6. CNG and other alternative fuels are also recognised through provisions that account for their environmental benefits. Manufacturers can generate, exchange and trade compliance credits to meet fleet-level targets.

Renault has introduced the Duster Strong Hybrid E-Tech 160 as part of its hybrid vehicle range. Launched on October 17th at an introductory price of Rs. 1.7 million (US$ 17,925), the SUV combines a 1.8-litre petrol engine with two electric motors and a 1.4 kWh battery to produce a combined output of 160 PS. Its ARAI-certified fuel efficiency is 29 km/l.

Renault is positioning strong-hybrid technology as an alternative to diesel for buyers seeking lower running costs without switching to a fully electric vehicle. Deblaise said the company would not reintroduce diesel technology, citing its experience in overseas markets where hybrids have increasingly replaced diesel vehicles.

He said hybrid vehicles could offer fuel economy and driving characteristics comparable to or better than those of diesel models at a similar price. Renault is promoting the technology under the slogan, "Forget diesel, Go Hybrid".

Deblaise expects demand for hybrids to increase as more models enter the market. He noted that the current selection of hybrid vehicles is limited and that some available models do not meet customer expectations for performance. He also said the Indian passenger vehicle market, which has traditionally relied heavily on petrol and diesel, was moving towards a wider range of powertrain options.

According to Deblaise, hybrids and CNG vehicles could together account for 50% of India's car sales over the next two to three years. However, Renault has not established a formal target for the powertrain mix. Speaking to a local daily, he said the two technologies could achieve a combined market share of 50% as manufacturers expanded their offerings.

Renault expects strong hybrids to have greater potential in vehicles longer than four metres, while CNG is likely to be more relevant to the sub-four-metre segment.

The company currently offers government-approved CNG kit fitment options for the Triber and Kiger through its dealer network. It is also developing factory-fitted, dual-cylinder CNG technology, with the cylinders intended to be positioned beneath the vehicle floor to preserve luggage space. Deblaise previously indicated that the system was being developed around a 1.0-litre turbo-petrol engine.

Electric vehicles are also included in Renault's expansion plans. Under its futuREady India strategy, announced in April, the company aims to increase its range to seven models by 2030. The portfolio is expected to include compact cars and larger SUVs with petrol, hybrid and fully electric powertrain options.

The upcoming Bridger-based compact SUV is being developed on a platform designed to accommodate multiple powertrain technologies, including electric propulsion. The development reflects the range of powertrain options available to Indian buyers, including petrol, diesel, CNG, hybrid and electric vehicles.

Deblaise said Renault's recent experience in India had highlighted the need to offer customers a wider selection of engines and powertrains. Customer demand for these options will also affect how Renault and other automakers meet CAFE III requirements, as the regulatory benefits of more efficient vehicles will depend partly on their sales volumes.

Renault India is targeting a market share of 3-5% by 2030. Deblaise said the company would prioritise product quality and customer satisfaction rather than pursuing sales volumes alone. He said the targeted market share could result from offering products that meet customer expectations. The company has not disclosed its current market share.

Renault also plans to encourage repeat purchases by offering vehicles that meet buyers' requirements. The expansion of its domestic model range forms part of its efforts to increase sales and market share while preparing for stricter fuel-efficiency requirements.

The company aims to increase annual export revenue from India to EUR 2 billion, equivalent to approximately Rs. 250 billion, by 2030. The target covers vehicles, components and associated services. Renault plans to expand exports from India while broadening its domestic product portfolio.