Small is Big for Renault

The French car maker Renault is unperturbed by the dismal show of its Logan, marketed through a JV with M&M. the focus now will be on compact cars and one such car will drive away from its Chennai plant in 2012-13 which is to be followed by another car. This makes the minimum option from Renault in the small car segment will be two, by 2015, at a price range of Rs3- 5.5 lakhs. The much hyped and much delayed small car, in association with Bajaj Auto, might cost Rs2lakhs and may be ready by next two years. This compact car will be taken care of by Bajaj and Nissan, the other partner.

Sidelining the JV with M&M, Renault is firm to go ahead on its own and in the next 18months, there will be 5 cars under Renault label of which B segment would dominate, said its MD for India. After the formal launch of Fluence and Koleos, in another 18 months, Renault would concentrate more on small cars. The dealer deal will be over by next two months and Fluence and Koleos will do business. The company is affirming its quality conscious, even in case of dealer network. Following the recession, the company had to recluse itself in the shade by monitoring the situation.

The spade work for revival, however, was carried out in its Chennai plant, which is ready for production at ease. Renault differs from Nissan, which targets export market except few ones to South Africa and Australia. The export may not cross the 50% mark, since the strong base for its small cars is India. Renault has the advantage of the sharing of technical know how from Nissan for its Chennai plant. Moreover, Nissan’s focus on export is a clear string for Renault to take hold of the Indian market. Renault is making a big plan for its small car project in India. Of course with its global reputation.

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