Driven by Kwid and Duster, French auto major said that it would cross one lakh sales in India by the next year. The company is also confident on achieving the 5% market share in the country by 2017.
Sumit Sawhney, CEO and managing director, Renault India said that the company would sell more than 100,000 units in the domestic market in 2016. Last year (2015 calendar year) the company sold around 56,000 units.
The target will be supported by Kwid and a revamped Duster model, he said. It will also ramp up production of Kwid to 10,000 units a month from its current level of 6,000 units. The company had showcased Renault Kwid 1.0 litre SCe and Renault Kwid Easy — R at the Auto Expo 2016.
Sawhney is bullish about the Indian car market, which he says it will be number three globally. As far as Renault’s growth, while the industry grew by 8.5%, Renault has grown by around 20%.
“Going forward, we will grow in three digit and will achieve the market share of 5% by 2017 as compared to 4% currently.”
Sawhney claimed that the company has received bookings for one lakh Kwid vehicles, which has around 98% localisation. “Around 14-15% are female buyers (for Kwid) who get the vehicles registered in their names,” he added.
Sawhney said the company would start exports of its car Kwid to South Asian Association for Regional Cooperation (SAARC) countries and the car’s parts to Brazil from March onwards and grow over 100% in the domestic market. The company is also looking at African markets.
“Currently we are not big exporters of cars. But starting next month we will be exporting Kwid’s parts to Brazil and completely built units (CBU) of the car to SAARC countries. We are also exploring African countries,” said Sawhney, while declining to comment on targets for export markets.
According to him, the car segment priced less than Rs 8 lakh is logging growth for the industry and Kwid would help to address this segment. He noted that the brand is already number two after Eon.
Sawhney said company’s CMF-A platform allows to bring products and the company would look at as and when it required.
He said the company will also expand its distribution network to 240 by 2016 end, but also introduce a mobile workshop. “The mobile workshop will be a proper workshop that can service around six cars a day. Our Lodgy car has been remodelled as a workshop. These vehicles can reach smaller towns for servicing,” he added.
On Bharat Stage VI emission norms by 2020 Sawhney said that the company is capable to meet the norms and are ready. According to him, the issue is the availability of quality fuel by 2019 so that vehicle manufacturers can test their engines.
“Cars fitted with Euro IV norms compliant engine can run with fuel used for Euro III engines. But a Euro VI emission norm complaint car can run only when it has the appropriate fuel,” Sawhney added.