Renault India expects to double market share to 5 % in two years1 min read . Updated: 04 Mar 2015, 03:00 PM IST
The company expects to launch Lodgy, a multi-purpose vehicle, in four weeks, and a small car (below `4 lakh) this year
Chennai: Renault India Pvt. Ltd expects to launch Lodgy, a multi-purpose vehicle, in four weeks, and a small car (below ₹ 4 lakh) this year.
The new launches should be able to more than double Renault’s market share to 5% by end of 2016, said Sumit Sawhney, country CEO and managing director. The European car maker whose has presence in India for the last three years has a market share of 2 %.
Lodgy will compete with eight-seater vehicles—Toyota’s Innova and Maruti’s Ertiga. The government’s smart cities project is intended to drive the demand for multi-purpose vehicles from these smaller towns and rural areas. The government had announced that it plans to develop 100 smart cities. Smart cities aim to provide reliable utility services, sanitation, solid waste management, storm water drainage, energy efficiency, improved access of information and a comfortable transport system.
The French car maker intends to more than double its sales of cars this year. In 2014, Renault sold close to 49,000 cars in the country and over 80% of it came from its best selling sports utility vehicle, Duster.
The small car to be launched will be a global car and India may be potentially the first market it gets launched, Sawhney said. Renault sees a large opportunity in the small car segment below ₹ 4 lakh price point. “I do not want to comment on unsuccessfulness of other car companies on launching small cars but we have not seen a trend of bike users progressing to cars in a big way," said Sawhey.
There is large potential for Indian biker users to progress to a car but in the last three to four years inflation has been high which means less money in the hands of people and higher interest rate deters customers buying a car through borrowing, said Abdul Majeed, national automotive leader from PwC, a management consulting firm.
“Our focus will be expanding our presence in the domestic Indian market and so exports will not be key priority for the company," said Sawhney. It plans to ramp its service network to 205 from 157 offices which will largely come up in smaller cities.
Responding to a query that other than Duster, Renault’s other brands like Scala, Pulse and Fusion have not done well, he said the company is unhappy with the volume sales from these cars and therefore have launched Scala and Pulse with more features.