‘India-EU FTA strategic, to drive vehicle exports and global parts sourcing’: Renault Brand Global CEO Fabrice Combolive

The much-awaited India-EU Free Trade Agreement (FTA) has been finalised and paves the way for sweeping cuts on import duty for cars coming in from Europe. The tariffs on imported cars coming in from Europe will progressively go down from the current peak of 110% to a low of 10% under an annual quota of 2.5 lakh vehicles.

We speak to Fabrice Combolive, the Global CEO of one of Europe’s top brands Renault who is also the Chief Growth Officer for the company responsible for leading global strategy, and international development.





As he unveiled the new-gen Duster SUV in India, he says that the trade agreement will help accelerate global product and engine development between the two countries, while also making India a favourable destination to make cars for exports to other regions.

Excerpts:

The EU Trade Commissioner is in India, and we have finalised a free trade agreement with the European Union. How critical is that for a company like Renault?

I think it's very strategic for us. First of all because we had decided to bet on India before this agreement, (and) to conceive, develop, and produce our cars, not only for India, but also for some export markets. If we can strengthen the relations between India and Europe, it will be an additional advantage for us.

We can use (the benefits of the agreement) in both directions, not only from Europe to India, but also from India to Europe.

From 110%, the import duty on cars will now go down to 10% as part of the trade agreement over the long run. How big will that be for companies like yours?

Now, if that happens, it means that we will jointly put a lot of development in common between India and Europe. We could work on many, many aspects like connectivity, and engine technology. And this is very important for us to have the best coverage in the world.

That's a very important point - not only to export cars, but also to share the same sourcing in terms of parts all over the world.

So, you think that the free trade agreement will also enable you to make India a hub for global exports?

Of course. I think it will enable us to gain speed because now we have to develop the cars in two years. In the past, it used to be five years. And to be able to keep the speed with the highest level of competitiveness, you have to partner between regions.

And for me, what I saw during the meetings with my teams here, it is the perpetual exchanges you can find between French engineers and Indian engineers.

If we talk about collaborations between companies, in Brazil, you've partnered with China's Geely. Do you think that you need a collaborative partner in India as well? Like for example, the JSW Group which is believed to have contacted you for a partnership. Do you think there's something possible between you two and are you looking for partners in India?

I think in India, we have the chance to have 100%-owned two (car) platforms where we are producing the Kiger, Triber and the Duster cars. I think with these two platforms, we can do a lot of development. It means, we don't absolutely need a partner.

But we are an open company. If somebody is interesting or if we see that we can have a win-win approach, why not?

But the first priority in India is really to develop our own cars on our own platform.

But are you in talks with the JSW group in India?

No, we are not talking to them.Discover everything about the automotive world at Times of India.