Lodgy’s monthly volumes have seen some improvement in 2016 at 600 units from 200 in 2015
French car maker Renault, which has tasted success with its small car, Kwid, now wants to focus on its multi purpose vehicle (MPV), Lodgy. As for Kwid, it is now focusing on increasing the service touch points in the tier three and four cities to further increase the volumes.
Lodgy’s monthly volumes have seen some improvement in 2016 at 600 units from 200 in 2015. This is due to the demand by fleet owners rising.
According to Sumit Sawhney, MD and CEO, Renault India, the sales of MPV will grow in the coming months. “As the construction activity of smart cities will increase the corporates will increase the in-house feet size to help transportation of their employees,” he said.
“We will continue to be in the MPV segment and will sell atleast 1,000 units of Lodgy per month by the end of the current year. Any vehicle in the segment takes more than a year to gain volumes and with Lodgy the ownership cost is significantly less as it has an efficient engine,” added Sawhney.
Renault aims to focus on multiple car models and is in a portfolio development mode and will invest in filling the gaps in its existing portfolio.
According to Sawhney, 70% of the volumes in the domestic market comes from the sub 4 metre or compact cars and with Kwid, Renault has managed to address that segment.
Initially, the car maker planned to establish 240 dealerships this year which has now been revised to 270.
In June, the company also launched workshop on wheels where mobile workshops visit the talukas once in two weeks to service the Renault cars.
There will be 25 workshop on wheels by the end of 2016.
“We have the CMFA platform which will enable us to work on the right products for the future. In the years to come Renault will launch one product per year. We also expect to achieve 5% market share at the end of 2016,”added Sawhney.