Renault has revealed its new industrial strategy which will see it concentrate on ‘high value-added products’ in Europe and expanding new car production in emerging markets like India, Brazil, Russia and China.
Renault’s strategy makes clear that the future of manufacturing in the west no longer lies with budget models sold on slim margins. Renault was long criticised by analysts for relying too heavily on the European market. The company now says ‘sales outside Europe now account for 37 per cent of total sales, compared with 17 per cent in 2000. And in 2011, the proportion is expected to rise to 43 per cent. Renault will continue to invest abroad, in particular India, Brazil and Russia.’
According to the company’s own figures, the sales in the BRIC area (Brazil, Russia, India and China) ‘have increased four-fold in the past ten years and now account for one-third of car sales worldwide. Non-European new car sales are expected to expand by 50 per cent between 2010 and 2016.’
Renault had earlier announced plans to set up its own distribution network in India to support the new products it will launch later this year. The company has aggressive plans for expansions in India and over the next 20 months, Renault will try to build its own identity with the launch of new cars and the setting up of Renault brand dealerships.
For the past 18months, the company had frozen investments at its Chennai plant, but it has now started investing in India again. There will be no sudden growth in terms of volumes, and Renault wants to escalate its volumes gradually. By end-2011, Renault will have around 10-15 dealerships where it plans to sell the Fluence and Koleos.
Renault, in alliance with Nissan is also developing a B-segment car and it would be manufactured at Renault’s existing plant at Chennai. This car will share the V-platform, the same one Nissan Micra is based on.
Renault’s strategy makes clear that the future of manufacturing in the west no longer lies with budget models sold on slim margins. Renault was long criticised by analysts for relying too heavily on the European market. The company now says ‘sales outside Europe now account for 37 per cent of total sales, compared with 17 per cent in 2000. And in 2011, the proportion is expected to rise to 43 per cent. Renault will continue to invest abroad, in particular India, Brazil and Russia.’
According to the company’s own figures, the sales in the BRIC area (Brazil, Russia, India and China) ‘have increased four-fold in the past ten years and now account for one-third of car sales worldwide. Non-European new car sales are expected to expand by 50 per cent between 2010 and 2016.’
Renault had earlier announced plans to set up its own distribution network in India to support the new products it will launch later this year. The company has aggressive plans for expansions in India and over the next 20 months, Renault will try to build its own identity with the launch of new cars and the setting up of Renault brand dealerships.
For the past 18months, the company had frozen investments at its Chennai plant, but it has now started investing in India again. There will be no sudden growth in terms of volumes, and Renault wants to escalate its volumes gradually. By end-2011, Renault will have around 10-15 dealerships where it plans to sell the Fluence and Koleos.
Renault, in alliance with Nissan is also developing a B-segment car and it would be manufactured at Renault’s existing plant at Chennai. This car will share the V-platform, the same one Nissan Micra is based on.