Renault aims at doubling sales with rural India in focus

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Updated: August 29, 2019 7:07:15 AM

The Indian unit of the French car maker has around 120 dealers who operate 350 outlets.

Renault, Renault rural India sales, Renault India, Duster, Kwid, MPV Triber, Maruti Wagon R 1 litre“To meet our target of doubling the market share by 2022, we need more volumes and for that, expansion into rural pockets is essential,” Mamillapalle said on the sidelines of the launch of its multi-purpose vehicle Triber.

To arrest declining volumes and market share, Renault India is banking on a deeper network penetration in the country’s hinterland, which it expects will give incremental volumes and help achieve its mid-term target of doubling sales by 2022. Venkatram Mamillapalle, managing director for Renault India, said the company aims 30% of sales volumes to come from rural markets and it has asked its dealers to open multiple outlets by the end of next year. “To meet our target of doubling the market share by 2022, we need more volumes and for that, expansion into rural pockets is essential,” Mamillapalle said on the sidelines of the launch of its multi-purpose vehicle Triber.

Currently, rural markets contribute about 2% of the company’s total sales, with volumes hovering around 500 units a month. The Indian unit of the French car maker has around 120 dealers who operate 350 outlets. Mamillapalle said the company will double the number of outlets by end of next year. He feels the urban pockets are already struggling with congestion, and with ride sharing gaining traction, car buying would primarily happen in rural towns.

The maker of models like Duster and Kwid has constantly seen its volumes crumble, owing to product gaps and stiff competition in every segment from players like Maruti Suzuki and Hyundai India. From a high of 135,000 units sold in FY17, the company’s volumes fell below 80,000 units in FY19, pulling down the market share to about 2.3% from 4.5% in FY17.

The company on Wednesday launched the MPV Triber priced between Rs 4.95 lakh and Rs 6.49 lakh, the cheapest MPV available currently. While the Triber, according to the company is a niche MPV, it will compete with Maruti Wagon R 1 litre, Hyundai Grand i10 and Ford Figo.

The seven-seater Triber, which is less than 4 metres in length and is powered by a 1-litre petrol engine comes with four airbags. The vehicle has the first in class feature where in the third row seats can be clicked in or out, transforming the Triber into a 6-seater or a 7-seater instantly.

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