Renault is appointing dealers

[auto-one]

Renault has started looking for business partners (read dealers) for its upcoming launches.Today's TOI carries a big advt.from Renault inviting dealers.
What would be the outcome of this initiative from Renault?
How soon would they be able to build a proper dealer network ?

[aargee]

They're getting late, but than never; here's another news that appeared last week

Renault to launch 5 models by 2013, revs up dealership network

NEW DELHI: French auto maker Renault on Wednesday said it will launch five new models, including a compact car, in India between 2011 and 2013.

In the run-up to the planned launch of its first products -- luxury sedan Fluence and crossover vehicle Koleos -- in mid-2011, the company has charted out an aggressive dealership network expansion plan in India, aiming at 70 outlets by 2013.

It is also gearing up for a media and advertising campaign, for which it has called for multi-agency pitch.

"A three-year roadmap between 2011 and 2013 has been charted out with five products, including a small hatchback, identified to be launched in India," a senior official of Renault India told media.

The company said it plans to launch the Fluence and the Koleos in 2011, followed by a full range of cars from its global portfolio.

Following the 2011 launch of the two cars, Renault plans to open 70 dealerships across tier-I and II cities and the project will be completed by the end of 2013.

"Initially, there will be about 7-8 dealers in metros when the first two products are launched in 2011, but parallel development of dealerships in smaller cities will take place," the official said.

The company is also getting ready for a marketing and advertising blitz in India in the run up to the launches and agencies have been asked to submit their credentials.

"The agency that we choose will be for a period of three years. We have already started calling agencies and by July we should know who will handle our account," the official said.

Renault India Country General Manager and Managing Director Marc Nassif said the company has a detailed ramp up plan for 2010, which essentially sets the base for the products to be launched between 2011 and 2013.

"Branding becomes one of the key pillars to this challenge," Nassif added.

During the Delhi Auto Expo earlier this year, Renault had announced that the Fluence and Koleos would be rolled out from its Rs 5,000 crore Chennai plant, jointly developed with Nissan.

Source - Renault to launch 5 models by 2013, revs up dealership network-Automobiles-Auto-News By Industry-News-The Economic Times

[d3adlythegame]

any idea as to how much investment is needed for becoming a dealer of Renault?

If anyone inquires, do let us know.

[2cents]

Will the dealerships being selling Nissan also? Not much of a move on the Micra front i see.

[maverickxx2006]

Renault - a good name in European and American markets with really good cars.

However, when it comes to India, the French have not been good. They have bungled up on their strategies, left the customers high and dry with their cars (read - Peugot). They have messed up Renault-Mahindra JV.

Though Renault cars might be good, when it comes to adapting the cars and its strategy to country (India) specific needs, they are not good at. Not to mention the cars they have planned are pretty expensive.

FIAT has learned hard way and look at the way they are slowy climbing up. FIAT First is surely confidence inspiring initiative.

These are my views.

[designersf]

Originally Posted by maverickxx2006

Renault - a good name in European and American markets with really good cars.

However, when it comes to India, the French have not been good. They have bungled up on their strategies, left the customers high and dry with their cars (read - Peugot). They have messed up Renault-Mahindra JV.

Though Renault cars might be good, when it comes to adapting the cars and its strategy to country (India) specific needs, they are not good at. Not to mention the cars they have planned are pretty expensive.

FIAT has learned hard way and look at the way they are slowy climbing up. FIAT First is surely confidence inspiring initiative.

These are my views.

Renaults are not sold in USA and Canada FYI (apart from a few exceptions). Even in the rest of Americas, it is developing and not very well established. I believe people will pay for the rejuvenated brand because of the Style. Dealers play a big role though. We have heard numerous complaints on Skoda dealers. Lets hope Renault doesnt mess it up.

[vikrantj]

I agree with maverick . Renault has tied with atleast two Indian companies , M&M and Bajaj (??) , but these tie-up have lead nowhere and dissolved in 5 years or so. That does not speak well of the strategy.
If Renault is serious about India then let it show people some good cars and say they want partner to sell and manufacture these cars, otherwise it is going to another Mahindra-Renault debacle.

[Mafia]

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[quattroa4]

yeah ! thats true and 260 of them . they are planning high for india right now and taking matters to b and c cities also . as i know they have finalised the dealer for our own city aurangabad also , where work is going on for the showroom also.

[atrisarkar]

As every other car maker entering the indian space, Renault also has to go through the learning curve. This news is definitely in the positive direction, however, they have to remember that :
1. As said several times, you can't keep throwing sub standard cars at a premium price.
2. Build the brand first. Earn the confidence. Failed JVs does no good. I agree that JVs definitely is the easier way to go, but history has it that these always tarnishes the brand image. In other words, you can't have the cake and eat it too.
3. Try to create a niche for yourself and give the consumer 'that' special reason to buy the car.

[auto-one]

Originally Posted by quattroa4

as i know they have finalised the dealer for our own city aurangabad also , where work is going on for the showroom also.

140+ Mercs, Skoda's manufacturing plant,and now a Renault dealer !!! Surely, Aurangabad seems to be inching towards becoming a car city.

[dhall_gagan]

It sure was a releief to hear they severed ties with Mahindra and this one is the icing on the cake with the news of their proper launch in India.
We will sure see some sexy cars from their stable, I am sure of it

[AyAn!]

Originally Posted by vikrantj

I agree with maverick . Renault has tied with atleast two Indian companies , M&M and Bajaj (??) , but these tie-up have lead nowhere and dissolved in 5 years or so. That does not speak well of the strategy.
If Renault is serious about India then let it show people some good cars and say they want partner to sell and manufacture these cars, otherwise it is going to another Mahindra-Renault debacle.

I don't quite agree here.Even after the failed JVs,their move to enter the Indian market alone with new strategies chalked out speaks a lot about their seriousness in our market. Under the circumstances,that's the best move this side of quitting. The Fluence and the Koleos look promising.With some aggressive marketing and pricing/ high localization,they deserve a good response.

Originally Posted by auto-one

140+ Mercs, Skoda's manufacturing plant,and now a Renault dealer !!! Surely, Aurangabad seems to be inching towards becoming a car city.

You missed Audi.They have a facility to assemble CKDs at Aurangabad too!

[MileCruncher]

The biggest problem with all these new entrants to the market is setting up dealership network. As most of the auto trade experienced people are already associated with existing brands, getting auto industry experienced people is a difficulty. So you'll see new guys from other industries becoming dealers. And this has both pros and cons. How the company manages this will define whether they survive or not.

[auto-one]

Having committed a massive investment of more than Rs.5,000 crores in its Chennai plant,Renault seems to be serious about its Indian operations.
Yes, it won't be easy to gain a foothold in the competitive Indian market, but the company seems to have started on the right note.