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Old 20th December 2016, 11:09   #1
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Default Renault to stop selling irrelevant CKD and SKD cars in India

Renault India is rumored to put a temporary stop on production of it's premium flagship SUV, the Koleos, and it's D-segment sedan offering, the Fluence.

According to Sumit Sawhney, Country CEO and Managing Director, Renault India, the company will pursue a renewed strategy for the Indian market, which includes stopping the selling of any semi knocked down (SKD) products.

He further added that Renault India won't be selling any product which has less than 80% local content for big cars, and 95% local content for small cars. The company's A-segment bestseller, the Kwid, has about 98% localisation.

Quote:
We have decided not to sell any product in India which is semi knocked down or has less than 80 percent of local content in case of big cars and 95 percent in small cars. We will be selling only mainstream products.

Fluence and Koleos were bridge strategy products but as we are moving towards higher localisation we will try to be a more mainstream company. We will not sell these cars in India until we have 80 percent local content
. ”
Sources have already disclosed that Renault will be investing Rs 3,000 crores towards product development in the near future, to bring 3 completely new products to the Indian market in the next couple of years. This lineup includes a compact SUV which is touted as a Brezza/EcoSport competitor.

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According to multiple sources, the carmaker is aggressively engaging with local suppliers to meet the static shift.

Renault plans to launch at least one new product every year, over the next five years, beginning with some exciting product innovations starting next year.

In terms of the dealer network reach, Renault grew from 205 to 270 facilities in 2016, making it one of the fastest ramp ups in the automotive industry.
ET Auto

Last edited by RavenAvi : 20th December 2016 at 11:10.
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Old 20th December 2016, 11:35   #2
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Default Re: Renault India to launch one new model every year and double market share by end-2016!

This is another time buying strategy till the boss finds another job. Renault has a proven K9K engine, they have been in India directly or indirectly for more than 10 years, what did they do all these years? Their design team is busy doing stickering job on the current models to sell them as Special Editions. The very thought of a new vehicle as a Eco Sport or Brezza competitor itself shows an identity crisis in their India operations. There is no better vehicle other than Duster to compete against Eco Sport and Brezza, just price it realistically, aim for higher refinement and improve the interiors.

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Old 20th December 2016, 16:17   #3
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Default Re: Renault India to launch one new model every year and double market share by end-2016!

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Originally Posted by RavenAvi View Post
Renault India is rumored to put a temporary stop on production of it's premium flagship SUV, the Koleos, and it's D-segment sedan offering, the Fluence.
Effectively they are saying that Renault won't be selling any Renault cars in India, other than re-branded Dacia models or something which sits below that. Infact with the market opening up to medium-sized crossovers (e.g.; Tucson) this probably is a good time to get the new Koleos.
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Old 20th December 2016, 16:47   #4
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Default Re: Renault to stop selling irrelevant CKD and SKD cars in India

Renault to stop selling irrelevant CKD and SKD cars in India - posts moved to a new thread.
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Old 20th December 2016, 19:03   #5
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Originally Posted by deehunk View Post
This is another time buying strategy till the boss finds another job. Renault has a proven K9K engine, they have been in India directly or indirectly for more than 10 years, what did they do all these years? Their design team is busy doing stickering job on the current models to sell them as Special Editions. The very thought of a new vehicle as a Eco Sport or Brezza competitor itself shows an identity crisis in their India operations. There is no better vehicle other than Duster to compete against Eco Sport and Brezza, just price it realistically, aim for higher refinement and improve the interiors.

Absolutely right! The ecosport and Brezza are in the range of 10 lakhs and all the Duster needs to do is offer better entry and mid level variants of the 85bhp engine to compete with these cars better. Just scrap the 110 bhp and all the special editions and bring in the Kaptur at a later stage to compete with the Creta. Trying to create a new compact SUV is going to be additional investments and will also have no USP like the Duster.
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Old 20th December 2016, 19:07   #6
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Default Re: Renault India to launch one new model every year and double market share by end-2016!

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Originally Posted by vb-san View Post
Effectively they are saying that Renault won't be selling any Renault cars in India, other than re-branded Dacia models or something which sits below that. Infact with the market opening up to medium-sized crossovers (e.g.; Tucson) this probably is a good time to get the new Koleos.
Two upcoming products which have been confirmed so far are the Megane sedan and the Kaptur SUV, both of which are Renault cars, albeit both of those will now come with 80% or more localisation (as per this latest announcement)

The third product is the compact SUV based on the Kwid platform, which again will see super-high localisation levels (maybe 90% or more), and if pitted against the Brezza & the EcoSport, might bring in decent numbers as well.

It's clear that they are targeting volume-centric segments, which are cost-effective to manufacture AND are immensely lucrative in returns.

Last edited by RavenAvi : 20th December 2016 at 19:12.
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Old 20th December 2016, 20:22   #7
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Default Re: Renault India to launch one new model every year and double market share by end-2016!

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Originally Posted by RavenAvi View Post
Two upcoming products which have been confirmed so far are the Megane sedan and the Kaptur SUV, both of which are Renault cars, albeit both of those will now come with 80% or more localisation (as per this latest announcement)
Kaptur is not a true Renault. It's a Duster made to look like a true Renault, the Captur SUV sold in Europe.

With this new announcement, I doubt if the new Megane sedan would make it to the Indian market. Pity, since it is a beautiful car!
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Old 20th December 2016, 20:39   #8
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Default Re: Renault India to launch one new model every year and double market share by end-2016!

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Originally Posted by CrAzY dRiVeR View Post
Kaptur is not a true Renault. It's a Duster made to look like a true Renault, the Captur SUV sold in Europe.

With this new announcement, I doubt if the new Megane sedan would make it to the Indian market. Pity, since it is a beautiful car!
What is interesting is that the Kaptur will be here to challenge the likes of the Hyundai Tucson & the upcoming Jeep Compass as a 5-seater "premium" SUV, while the Duster will morph into a future 7-seater! (to go up against the BR-V, possibly?)

They will definitely bring the Megane sedan to India as the Fluence replacement. (link)

And this announcement effectively puts to rest any doubts regarding the Koleos's future - it is pretty much dead and buried.

So the future lineup looks like this:

Kaptur,
Megane sedan (Fluence AND Scala replacement?),
CMF-platform based compact SUV,
CMF-platform based compact sedan,
CMF-platform based B-segment hatch (Pulse replacement?),
CMF-platform based minivan (not sure if this will be pursued).

That should complete their lineup in the next 5 years. Pretty sure they will milk the CMF platform and architecture to the full.

Last edited by RavenAvi : 20th December 2016 at 20:43.
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Old 21st December 2016, 04:25   #9
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I hope it does not turn into another Brio/Mobilio/B-RV fiasco. Honda took the Brio platform too far and are now paying the price. Hope Renault does not make the same mistake with the Kwid platform.

Last edited by GTO : 21st December 2016 at 12:47. Reason: Typos
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Old 21st December 2016, 12:56   #10
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Default Re: Renault to stop selling irrelevant CKD and SKD cars in India

Well done, Renault! Why waste time selling duds like the Fluence & Koleos? On a related note, the Fluence was actually discontinued a while back - related thread.

Just wish the awesomely sexy Megane somehow finds its way here - related thread.

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Originally Posted by deehunk View Post
This is another time buying strategy till the boss finds another job. Renault has a proven K9K engine, they have been in India directly or indirectly for more than 10 years, what did they do all these years?
Unless you have been sleeping under a rock, you can't have ignored the stupendous success of the Kwid . It's given Renault the kind of success in the entry-level segment that mighty Hyundai couldn't manage with the Eon & Tata couldn't with the Nano. Make no mistake, it is a HUGE achievement.

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There is no better vehicle other than Duster to compete against Eco Sport and Brezza
I think the days of the Duster's success are behind Renault. When it arrived, there was no other car-based SUV like it...a definite USP. But it felt old at the time of launch, and feels even older today. Newer competition like the Vitara Brezza on one side & the Creta on another have sealed its fate. For that matter, even the EcoSport is able to maintain better volumes after so many years, thanks to its contemporary nature & superior pricing strategy.
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Old 21st December 2016, 15:51   #11
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Default Re: Renault to stop selling irrelevant CKD and SKD cars in India

Here it is in an interview with CEO & MD Renault-India, on Renault-India's plans.

Seeks 5% sustainable market share:


Quote:
The company wants to put in at least 80% local content in big cars to reduce price and get volume in India. For cars that are less than 4-metre long, this can be as much as 95%. The plan is to make cars suited for the Indian consumers in India with parts sourced from India.

Last edited by GTO : 22nd December 2016 at 09:58. Reason: Typo
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Old 22nd December 2016, 09:11   #12
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Default Re: Renault to stop selling irrelevant CKD and SKD cars in India

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Originally Posted by GTO View Post

Unless you have been sleeping under a rock, you can't have ignored the stupendous success of the Kwid . It's given Renault the kind of success in the entry-level segment that mighty Hyundai couldn't manage with the Eon & Tata couldn't with the Nano. Make no mistake, it is a HUGE achievement.

I think the days of the Duster's success are behind Renault. When it arrived, there was no other car-based SUV like it...a definite USP. But it felt old at the time of launch, and feels even older today.
GTO, I woke up only after I bought the Duster, . My BIL is still waiting for some small niggles to be fixed under warranty, Renault washed off their hands saying dealer will fix them, the dealer has no clue of these issues and is buying time from 2 months. Localisation of parts alone cannot make a car cheaper in India, the design team in India also needs some degree of freedom to work. Renault is headed by a ex-GM person and also has engineers from other OEM's which have flopped in India both in their design and sales team. This is one of the reason why Kwid has been a success in India, but they will have to consolidate in 2017 and not go into a standby mode.
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