Renault’s Ambitions in India

Having a logistic hub also in Pune

India is one of Renault’s priority markets, along with Russia, Brazil and China. With a staff of more than 12,000, the Group has a strong local base there enabling it to adapt more effectively to local realities and requirements. The "Kwid" is an illustration of Renault’s ability to develop vehicles that make everyday life easier by meeting the needs of customers looking for a stylish vehicle that is robust and easy to drive. As an innovator since 1898, Renault has constantly sought to pioneer new ideas, question conventional thinking and reinvent the way we use cars. The "Kwid’s" design and innovative features are poised to play an essential role in Renault’s ongoing expansion in India.

“With 'Kwid', Renault continues to pursue its strategy of accessible mobility for all to step up its international growth", says Carlos Ghosn, Chairman and Chief Executive Officer of Groupe Renault: "Using a new Renault-Nissan Alliance platform and following the trail blazed by the Duster, the 'Kwid' will enable Renault to continue its expansion and address the needs of customers who want a vehicle that is stylish, robust and easy to use.”

A high-potential market

With a vehicle ownership rate currently standing at just 20 per 1,000 inhabitants compared with 105 in China, 300 in Russia and 600 in Europe, the Indian automotive market is expanding rapidly. In 2014, sales increased by 3.1% to reach 2,537,892 vehicles and volumes are expected to be around 5 million by 2020. As a result, India could become the world’s third biggest market by the end of the decade.

Renault’s ambition is to increase its share of the Indian market from 2% to a mid-term 5%. More than ever, the emerging young middle classes see mobility as a way to escape the constraints of the public transport system, gain a degree of freedom, display their social success and have a safe means of transport for their family. In a market where the A2 and A3 segments account for the bulk of sales (the A segment currently accounts for more than 30% of retail sales), a growing number of customers are keen to own larger, higher-end models. Against a backdrop of rapid urban development, customers in India are looking for more connected, sophisticated cars that are reassuring and designed for family use. The "Kwid" meets these requirements - at 3.68 meters long and 1.58 meters wide, "Kwid" is ideally for zipping about in urban traffic, while its high-up driving position provides greater visibility for more relaxed journeys.

Fast-Expanding Network

Since arriving in India as an independent brand in 2010, Renault has established itself as a highly dynamic player in the automotive sector. Renault has placed the emphasis on local presence and local content by setting up an operational base for the Alliance, with a production plant in Chennai, along with the Renault-Nissan engineering and purchasing centre and the Technical Business Centre India.

The design centres in Mumbai and Chennai, and logistics hubs in Pune and Chennai reveal the brand’s determination to establish a strong long-term presence in the country. The Mumbai design centre was the first to be opened in India by a foreign vehicle manufacturer in 2007. Renault has an extensive network of dealers covering over 80% of India, in 120 cities. This fast-expanding network increased from 14 dealers in mid-2011 to 157 at the end of 2014. It is expected to reach 205 dealerships by end-2015.  The Fluence and Koleos were launched in May and September 2011 respectively. Then, in January, July and September 2012, Renault rolled out the "Pulse", "Duster" (Indian Car of the Year prize in 2013) and "Scala". Renault sold nearly 45,000 vehicles in 2014, compared with 1,500 in 2011. In the space of just a few years, Renault has made greater gains in terms of recognition and visibility than rival brands present in India for 10 years. Today, Renault ranks as the number one European make and number nine overall in India for vehicle sales. The "Lodgy’s" recent launch in April 2015 is expected to consolidate Renault’s growth in the country. (ps/jow)

Infos: The "Kwid" will be launched in India in the second half of 2015 with a price tag of between 3 and 4 lakhs (4.000 - 5.500 Euro).