The buzz does not stop for Renault in India with four product launches in just one year. The company is now gearing up to launch its fifth one ? a small sedan ? before Diwali and possibly another small car by next year to fill the vacuum in the below-Pulse segment and also take on the mighty competition in India?s small-car segment.
Renault, which considers India a major market for itself after Brazil and Russia, also wants to make it one of the top 10 market in the next two years as it has clearly shifted focus from the declining European market to these three countries, said Marc Nassif, managing director, Renault India. ?We believe India will become one of the top three in the world auto history by 2020 and we are here to play a major role,? he added.
In an exclusive interview with the FE, Nassif said: ?We have made strong inroads into Brazil and Russia with substantial market share. It is time for us to make it big in India and accordingly we planned to have at least five products before 2012.?
?We don?t relax on what we have done so far. We continue to explore Indian market to add new products. We have lined up products ? Pulse to Koleos ? which cover 50% of the Indian market. What we need to do is to focus on the other 50%, which is below Pulse?s size, which dominates other 50%. We cannot afford to miss this segment and are working on this area now.?
The company feels the need to be a volume player in the market and is accordingly developing a small car below the Pulse range. ?We cannot give any time frame for the launch of this car and how it will be positioned,? Nassif said. Market sources say the proposed small car will be pitted against those in the A+ or B segments. Similarly, the soon to be launched small sedan will take on Vento, Honda City, Ford Fiesta among others, sources added.
?With only six months of sales and minimum number of dealers and with two products – Fluence and Koleos, we could sell only 1,500 cars in 2011. However, with Pulse, Duster and a proposed small sedan, Renault hopes to sell 30,000 units in 2012 and we seek to more than treble by 2013 to 100,000 units,? he said. This could be possible with the expansion of network from current 55 to 70 by the end of the year to 100 by 2013.
The company will start exporting Duster before the year-end to the UK and will explore markets such as African, Asean/SAARC regions.
?The company also don?t rule out exporting other models such as Pulse to these markets. It remain to be seen, how the market develops for these products,? Nassif said.
Renault has outsourced parts/components worth 70 million euros in 2011. It was 40 million euros in the previous year. It hopes the outsourcing to touch 100 million euros in 2012.
?It is interesting to note that Renault outsources critical components for its global operations from India, including strategic components for electric cars, which is really a major thing to happen on the outsourcing front,? Nassif said.
Nassif said the company has invested heavily on the machines in India to increase the localisation level. ?We will increase the level to 80% from current 60%, by localising transmission, gearbox, engines, which are very critical for us to take on competition,? he said.
However, Renault is worried over the uncertainty of the government policies. ?Every March, one keep guessing whether the government will change its policy decisions (regarding a possible tax hike on diesel cars) or announce something new. If we need to make investments in powertrain, it is will be long term (20 years). We are not against policy decisions, but it should be for the long term, stable and should come with clarity, so that industry can take a strong decision.?
