Renault India looking at doubling its market share by 2016; Lodgy MPV and XBA small car to bring in the volumes
Renault India has planned two new car launches this year to revive its flagging sales. The French carmaker will be launching the Lodgy MPV and the sub 4 lakh XBA hatchback in the Indian market this year. According to an Economic Times report Renault currently has only a 2% market share and aims to reach 5% in the next two years. Renault India`s front runner has been the Duster which accounts for 80% of its sales volumes and the rest of its products haven’t been able to make a dent in the market.
With increasing competition from cars like the Ford Ecosport and the upcoming Hyundai ix25, Renault knows that it needs to bring in fresh products to take on the competition. The first product would be the Renault Lodgy which would be launched towards the end of this month. The company just launched the updated Pulse with a host of new features and an updated Scala would also be launched by the company in the near future.
Apart from these launches the XBA hatchback which is a very important product for the company will be launched after nine months as stated by Renault India CEO and MD Sumit Sawhney. The small car is currently in the developing stage, and it is the product that the company will be banking on to bring in the volumes. The small car segment is dominated by heavy weights like Maruti and Hyundai, and we will have to wait and see how this product from Renault performs in the market.
Renault India currently sells five products in the Indian market – Duster, Scala, Pulse, Fluence and Koleos. The bulk of its sales have been coming from the Duster, and with the launch of the Lodgy, the company is expecting a decrease in the Duster`s share. In 2014 the company sold 48,000 vehicles and is expecting to double its sales in the next two years. The company currently has 157 dealership outlets in the country and has plans to increase it to 205 by this year end.
Nissan and Renault have a joint manufacturing facility in Oragadam near Chennai with an initial investment of 4,500 crores. With regards to the tie up with Nissan, Mr Sawhney said that there will be no cross-badging products coming out of this alliance anymore. Both the companies initially launched cross-badged products like the Duster and Terrano, Micra and Pulse, Scala and Sunny. Except for the Duster all the other products have failed to make any impact.
As per reports if the Lodgy MPV and small car do well in the Indian market, Renault India might export them to overseas markets as well.