Renault India keen to enter the used car market; to launch two new car models in 2015
The used car market in India is a huge enterprise; the revenue capacity is on par with the new vehicle market. Esteemed French auto manufacturer, Renault, aims to expand its product business with the establishment of used car business in the Indian market. International car firms view India to be a favourable car business market, Renault has planned its product launch for 2015 with two new models. Renault has big plans to strengthen its profit driving vision for India, and aims to increase its market share output by over 5%. The company is going to construct a vast Research and Development (R&D) manufacturing unit that can manufacture up to 4,500 cars in Chennai and will build models that match the taste buds of Indian consumers.
‘’India is a strong profit making segment for Renault in the coming two years, it is an important market for us’’, said Bernard Cambier, Chairman of Renault, for Middle East, Africa and India, during the display of products at the prestigious 2014 Paris Motor Show. It is interesting to learn that Renault aims to enhance its product portfolio in India, to achieve this, Bernard spoke of his plan to discuss new business proposals with the MD and CEO of Renault India, Sumit Sawhney. He spoke of his earnestness to discuss new launch and service plans with Sumit and also set up a used car business network.
The used car market is a sale driving platform, especially under the current constrained economy, where inflation rates have shot up to new levels. Sawhney is of the view that the second hand car market is an admirable platform to build brand reputation. Renault is a powerful brand in India, and the arrival of Duster has lifted its brand image. The drive behind the company to build a used car market according to Sawhney is ‘’when a customer comes to buy a Renault car, he already owns a Renault car; he is just trying to build the value of his current model. ‘’
The popular Renault cars in India are Koleos, Fluence, Duster, Scala and Pulse, all these are desired by people who have a liking for the French car maker`s products. On the impact of the second hand Renault car market, Sawhney said, ‘’ if a consumer decides on purchasing a product from the Renault brand, then we can provide him with a feasible option to sell his current car and opt for a new model. The used car market will therefore benefit the seller and dealer. Sawhney also spoke of his plan to start the business by 2015.
Renault’s product plan for Indian market is a sub Rs 4 lakh car and multipurpose vehicle. Renault`s vision for the Indian market is to build products suitable to Indian tastes and sell it at a customer centric price, which according to the company is a firm strategy to elevate the new and used car market. In simple terms the selling proposition phrase is ‘right product at right price.’ The French auto maker`s plans to enter the second hand car market is good news for Renault car enthusiasts. Renault will face tough competition from established players in the used car business like Maruti True value and Hyundai Advantage.