Friday, 6 January 2012
INDIA: India key to Renault’s global expansion strategy - execs
Renault has targeted India as one of three key markets, along with Brazil and Russia, in its global expansion plans, senior executives said.“It is very critical that we succeed here in India as it is a key market in our mid-term plan,” Renault Group sales, marketing and LCV chief Jerome Stoll told just-auto at a media briefing in New Delhi on Tuesday (21 June, 2011) to announce local production of a right hand drive Duster line for domestic and export sales.
Renault sold 160,000 units in Brazil and 96,500 units in Russia last year and has targeted 100,000 units from 2013 onwards in India.“We are working on a strategy to achieve 5% market share in each of these key markets,” Stoll said.Renault has a 25% stake in Russia’s Autovaz. Globally, it sold 2.6m units last year and plans to reach 3m in 2013. “We sold 1.7m in Europe, 450,000 in [the Americas excluding the US and Canada] and Africa respectively and 250,000 in Russia and eastern Europe. With the growing importance of emerging markets like India, Brazil and Russia, [from] 2013 onwards 45% of total [Renault Group] sales would likely come from outside Europe,” Stoll said.
The automaker will launch five new models by the end of 2012, starting with the Fluence [the global replacement for the previous Megane sedan] launched last month. The Fluence was the first car to be produced at the Chennai plant and Renault sold 130,000 units worldwide in 2010. “India will be among the first countries where Renault will launch the redesigned Koleos followed by a made-for-India B+ segment hatchback during the Auto Expo in New Delhi early in January. The Duster will be launched in the second half of 2012 and another car by the end of next year,” said Philippe Klein, product planning head for the Renault Group.
Renault also clarified that the proposed B+ hatchback for India would share its platform with the Nissan Micra and be built at Chennai.Renault will launch more models from 2013 positioned below the current range. “After gaining a foothold for the Renault brand in the Indian market, we will certainly target the mass mobility market and offers model below the current range of five,” Stoll said.
Renault has committed to invest US$1bn by 2015. “We have long term goals for the Indian market, that is the reason we build a design studio in Mumbai and a technical centre in Chennai.
Both centres will develop models for India,” Stoll stressed.
Renault has already built a strong vendor base of around 50 suppliers and is sourcing components like high precision machine assemblies, multiple castings and forgings and a significant amount of stamped parts. It has targeted local sourcing worth EUR100m by 2012.
However, confusion still surrounds Renault’s small car project with Bajaj. No more details were available at today's event but there was a clear indication that, if things don't work out with Bajaj, Renault will pursue its low cost small car dream independently.
“Bajaj is developing the car while we are responsible for branding it, let Bajaj come up with the final product and we will decide,” Klein said.
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