The Indian arm of French auto giant Renault will join the crowded compact car segment with the launch of its small car at the January Auto Expo 2012 in New Delhi.
The car will be pitched against the likes of Maruti?s Swift, co-partner Nissan?s Micra and Volkswagen?s Polo. The company will also launch its sport utility vehicle (SUV) Duster early next year, said Sudhir Rao, deputy managing director, Renault group in India.
Speaking to The Financial Express he said, ?The company will only focus on domestic (Indian) market as it offers huge opportunity on a long-term basis. We have just started off with Fluence and Koleos, which have been getting encouraging response. Renault India is looking at 1,00,000 units sale by 2013 as against less than 1,000 now (only two products). As of now we have sold around 800 units with Koleos taking the lead in sales.?
?This could be possible with the launch of three more products before 2013, including a small compact car, expanded dealers network from 15 to 100 and commencing of second production line in 2012,? Rao said.
It is believed that the company will bring its global hatchback ?Modus? to take on Swift, Micra and Polo, sources said.
?Given the quality workforce and conducive climate, we believe that Renault has the scale to achieve the desired sales target by 2013. We need to make labour force as part of our team without violating fundamental principles to achieve Indianisation and indigenisation levels,? he said.
?Renault India will increase its components sourcing from India to euro 100 million in 2012 as against euro 65 million now. The Indian component manufacturers have been recognised by the company for their quality, cost and reliability and we feel comfort to increase our outsourcing from India. We have 30 strong vendors, including some of the leading auto components manufacturers here,? he added.
According to him, unlike service sector, manufacturing will play a pivotal role for India to sustain its annual growth. If India need contribution from manufacturing to go up from 15% to 22% or 25% in the next few years, we need to exploit our skilled labour force to the maximum. Our workforce is truly a competitive weapon and they need to be treated at par with that of anyone, like IT industry, he added.
