Renault to start car-less showroom in India

French carmaker Renault, is gearing up to open a digital dealership in India. This showroom will have no vehicles. Instead, cars will be showcased on digital screens. Customers will be able to access product information on internet-enabled large TVs. The dealer will store inventory in a stockyard. The digital dealership concept is expected to reduce the dealer's costs as floor space of a showroom is more expensive than that of a stockyard.

Sumit Sawhney, CEO and Managing Director of Renault India, has said that the digital showroom will be an experience centre. He believes that consumers see a car on the road before going to the showroom to have a closer look. So not having cars in the showroom will not be a dampener. If the idea is successful, it will be replicated across other showrooms.

The digital dealership concept has been developed by TVS & Sons, parent company of the TVS Group. It believes that digital showrooms will allow dealers to operate on a tight inventory. The company claims that the model will be cost-effective for dealers who have to invest frequently on variants and operate on low margins.

Renault's current market share in India stands at 2%. It is aiming to increase it to 5%. The company's only successful model has been the Duster compact SUV. In such a scenario, we believe that Renault is taking a huge risk with digital showrooms. Indian customers like to touch and feel vehicles before they decide on purchasing. Many customers could give Renault cars a miss if they are not allowed to experience the vehicles physically. Nobody would like to find differences in what appears in a virtual showroom and what is delivered in reality.

Information, images and even videos on various car models are available on numerous websites on the internet.

Source: ET Auto