21st October 2016, 18:45
Distinguished - BHPian
Join Date: Jun 2011
Location: Flying Around
Thanked: 16,389 Times
| | Re: Renault India to launch one new model every year and double market share by end-2016!
Having invested Rs 500 crores into it's Indian arm recently through allotting 50 crore shares (valued at Rs 10 each) via it's Indian subsidiary, French auto giant Renault is now preparing to invest another 3,000 crore rupees over the next 4 years. This is to support the slew of product launches it has planned for the Indian domestic market.
Encouraged by the success of the Kwid small car, Renault is working out an aggressive product strategy for India. It plans to introduce one new product every year and bring SUVs, MPVs, crossovers and sedans priced under Rs 8 lakh to challenge the market dominance of Maruti Suzuki and Hyundai Motor India. A large part of the planned investment will be in products and R&D resources, as manufacturing capacity is already in place. |
"The sense of confidence in India is very high," said a person with knowledge of the company's plans. "The brand's presence in the top three global markets — China, US and Japan — is fairly modest. Now it has got a headstart in India, which is set to become the third largest market in the world in the coming decade. With a CMF-A platform, there are lot more segments the brand plans to address in coming years."
Renault is seeking to bridge the gap between the Kwid and the Duster SUV with more B-segment cars in the sub-Rs 8 lakh market, as well as drive in a more premium SUV — internally codenamed HHA, it is likely to be launched during the festive season of next year and take on models such as the Mahindra XUV 500. At Renault, the message to the Indian team is clear, "think big", Bernard Cambier, the company's chairman for the Africa-Middle East-India Region, said during a recent interaction with Indian media. "I am fighting for investments and more models. We have a big engineering centre, robust purchasing department, the aim is to work towards more 100 per cent localised Indian models. Clearly the longterm ambition is to be in the top 3 — the podium — if not, then you are not a serious challenger," Cambier said, while declining to divulge specific information on products or investments.
On potential opportunities, Cambier said with the modular CMF-A, Renault can address a significant part of the sub-Rs 8 lakh market. "The B segment accounts for 60 per cent of the overall car market, Renault will have offerings in future to address that space. Having addressed all wide spaces, we should look at a minimum of 7-8 per cent market share in the mid-to-long term in India," Cambier said.