New Delhi: With an aggressive focus on emerging economies, French car-maker Renault expects India to gain 20 places to become its 11th largest market by 2013, by which time it will sell six locally produced models.
“Let us look at how our growth is shaping up in our key emerging markets—Brazil, Russia and India... As for India, with sales growing nine-fold in three years, it is set to gain 20 spots to become 11th in our ranking,” Renault chairman and CEO Carlos Ghosn said while laying down the company’s roadmap till 2016.
The company has set a target to sell over three million vehicles in 2013 globally, compared to 2.6 million units in 2010. In India, it currently does not sell any car.
“In India, until now, we did not have vehicles adapted for the market and locally produced. In Chennai, we will launch production of Koleos and Fluence in 2011. We will localise a SUV in 2012, as well as small vehicles based on a Nissan platform, specifically designed for India,” Ghosn said.
The company is gearing up to be present in the growing Indian car market, which is expected to reach near two million units in 2010-11, with six locally produced models by 2013.
Post-2013, the firm plans to enter the highly lucrative Indian small car segment with a model designed and developed with a specific eye on the local market.
Last month, Renault executive vice-president (Sales and Marketing) Jerome Stoll had said the proposed small car will be positioned above the ultra low cost car (ULC) that Bajaj Auto is developing for it and alliance partner Nissan.
The Renault-Nissan alliance is investing Rs4,500 crore on setting up their plant in Chennai, which will have a total annual capacity of four lakh units. Nissan is already producing its ‘Micra´ hatchback from there.
Ghosn said Brazil is likely to become Renault’s second biggest market from third position now in the next three years, while Russia should gain five spots to become its fourth largest market.
According to the company’s estimates, sales in the BRIC countries (Brazil, Russia, India and China) have increased four-fold in the last 10 years and currently account for one- third of car sales worldwide.
Renault said that it will “continue to invest abroad, in particular in Brazil, India and Russia” as the forecasts for 2016 do not see the European auto market returning to its 2007 pre-crisis level. In 2010, Europe recorded sales of 15.3 million vehicles, 20% lower than in 2007.
“Between 2010 and 2013, Renault will invest €5.7 billion in its industrial sites, of which 40% (will be) in France,” the company said.