French car major Renault said that it will better the industry growth in 2017 despite an expected challenging first quarter of the new year due to demonetisation. The auto company expect that the industry bettering growth could be possible through expanding dealers network, launching of a new product in volume segment, entering into newer markets and the possible interest rate cuts/easing of taxation policy.
Renault India CEO & MD Sumit Sawhney said, “Though Q1 2017 will be a challenging one due to cash crunch, however, being the younger player in India as well continued demand for its entry level hatchback Kwid, we hope to better the industry growth, which is expected to be around 5% in 2017.”
“The growth could also be driven by a new product launch (volume segment of 4 metres length) during second half (festive season) coupled with possible interest rate cut and simplification of taxation policies and I am cautiously optimistic on 2017 growth,” he added.
According to him, the company expects to end the 2016 calender with a sale of around 1,30,000 to 1,40,000 units, which is more than double of last year’s 55,000 units. Despite the effect of demonetisation on November 8, the company achieved a growth of 23% in November sales, while majority saw poor sales. The company will end the 2016 with 4.5% market share and would attain 5% or more in 2017.
“To counter the uncertainty prevailing over the demonetisation as well ensuing Budget and GST in the early period of 2017, the company will enter into newer markets, including South Africa, Bangladesh, Bhutan to export more while expanding number of dealerships to 325 from current level of 270,” Sawhney said.