French auto major Renault on Thursday launched its entry level model Kwid at an introductory price starting at R2.57 lakh (ex-showroom, Delhi). With the launch, Renault will now compete with Maruti Suzuki’s Alto and Hyundai’s Eon in the entry level small cars segment.
The segment which is dominated by Alto and Eon, contributes close to 25% of the total passenger vehicle sales in the country. Currently, Alto leads the segment selling over 23,000 units a month, followed by Eon at about 6,700 units per month.
Renault is betting big on the Kwid as it chases a market share of 5% in the Indian market by 2017 from the current level of just below 2%. An investment of R3000 crore has gone into development of the new product. “We are confident that Kwid will be a big contributor for the company in achieving the 5% market share in India by 2017,” Renault India chief executive officer and managing director, Sumit Sawhney told reporters.
Kwid, which has been developed with an eye on the Indian market and is to be sold in other emerging markets as well, has 98% localisation, the company said. “The level of localisation we have achieved in Kwid is the highest ever by an auto manufacturer in India when a new model is launched,” he said, adding that it would help in keeping the maintenance cost of Kwid lower by 19% from the market leader.
The SUV-shaped small car will be powered by an 800cc petrol engine and would come in four variants and two options, is priced between R2.57 lakh and R3.53 lakh. While Maruti Alto800 is priced between R2.52 lakh and R3.72 lakh.