India’s 'Most Affordable' Electric Car Spotted - But Is It Really Coming?
An uncamouflaged car sitting at the Renault Design Centre near Chennai has stirred up a flurry of speculation. Onlookers were quick to label it “India’s cheapest EV in the making.” The compact proportions, Kwid-like silhouette, and lack of tailpipes pointed to one thing - a small electric hatchback that could theoretically become the most affordable EV in the country. But scratch beneath the surface and a different picture emerges. The truth is, this so-called budget EV may never make it to your local dealership.
The Ghost of the Kwid EV Plan
Renault has been flirting with the idea of an electric Kwid for a while now. Back in 2020, there were whispers of the Kwid-based City K-ZE - already launched in China - being repurposed for India. The idea made sense back then. Tata was just beginning its electric journey, and the small car market still held promise. But things have changed.
The small hatchback segment is no longer the beating heart of India’s car market. Customers have shifted their attention to compact SUVs and crossovers. Add to that the falling margins, rising costs of batteries, and a general focus on higher-priced, feature-rich products, and the equation starts looking shaky. Renault quietly shelved the Kwid EV project a few years ago. What we’re seeing now could very well be a design validation mule or a one-off demo vehicle brought in to test components or showcase work at Renault’s newly inaugurated design facility.
Why a Cheap EV May Not Make Business Sense Now
It might be tempting to dream about a Rs 5 lakh EV, but the economics simply don’t line up. Battery costs, though declining, still make it difficult to offer a viable electric car at entry-level prices without heavy compromises on range, safety, or features. For Renault, the better path may be to invest in more premium segments.
That’s where the Kiger EV fits in. Already a popular petrol compact SUV, the Kiger has the right dimensions, presence, and platform to transition into an electric avatar. In fact, alliance partner Nissan is expected to bring in the Magnite EV first, with Renault likely to follow suit. These vehicles would comfortably sit in the Rs 10–14 lakh bracket, a sweet spot where customer interest in EVs is beginning to grow, especially among city users.
Focus Shifting to What Sells
Renault’s current line-up in India has three core models - Kwid, Triber, and Kiger. And there are mid-size SUVs Duster and Boreal that will come. The Kiger is seeing decent traction in the market. Electrifying the Kwid may bring headlines, but it’s unlikely to bring sales. The hatchback segment has shrunk drastically, with even established players like Maruti Suzuki and Hyundai seeing reduced interest in their entry-level offerings.
The Kiger EV, on the other hand, could tap into aspirational buyers who are looking for a blend of affordability, space, and electrification. It would also help Renault compete against the likes of Tata Nexon EV, Mahindra XUV400, and MG’s upcoming low-cost EVs. A cheap electric hatchback just doesn’t seem to fit into this mid-term strategy.
So, What Was That Car Then?
The prototype spotted in Chennai is likely an internal test unit - perhaps even imported from China or another market - meant to test out hardware, software, or local climatic conditions. It could be used to gauge component compatibility or train design teams. With Renault recently investing in expanding its design and R&D footprint in India, such test cars will likely become more common, even if they’re not destined for sale.
Enthusiasts may hope for a sub-Rs 6 lakh EV, but for now, that dream remains parked. The Indian EV market is maturing, and carmakers are focusing on segments with greater profit potential and consumer demand. Renault’s cheapest EV may have been spotted on the road, but don’t hold your breath waiting for a showroom launch. This one’s probably not coming - at least, not anytime soon.