Renault re affirms its commitment for low-cost cars in India

Keeping aloof the tussle with Bajaj, the French car maker Renault is stubborn to please the Indian minds with its low cost cars. Close on the heels of the imminent success of Nano, Bajaj and Renault worked together to wrap the market with a similar one before 2011. But the move has been kept idle with both companies making soft pedalling in this regard. The price Rs1 lakh is very crucial for the market both in India and overseas as the car is to be provided with necessary features and performance, said the CEO of Renault. Regardless of the price mooted along with Bajaj, Renault is now working its own strategy to make the customers happy and comfortable. Witnessing the overall success of Nano, Renault does not want to lose any more time to launch its low cost car in association with Bajaj.

The company is full of optimism in the Indian market as moving from two million cars to 6 million cars with an overseas potential is a welcome sign. Renault assesses that the Indian frugal engineering and frugal product capabilities are received globally, as the Indian techs are no inferior to the global standard, said the CEO. The on going tussle with Bajaj is not a unique in any country, he said, and India is a country having long tradition and long history; so it is no threat to the company, he assured.

The company is on the path of reviving with patience and determination to prove its might. He asserted that the debacle of Logan has been the major reason for the concern and both Renault and M&M are in talks to regain the sales. Further, he said that the proposed unit in Chennai, at Rs4200 crore would start its production in the early 2010, he said.
He admitted that fall in sales of Logan, a product of Renault’s joint venture with Mahindra & Mahindra, was a cause of concern and the company is talking with M&M on ways to overcome the situation.

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