Renault not giving up on small cars; will soldier on with current gen Kwid

While most manufacturers have exited the entry-level small car space, including major players like Tata Motors and Hyundai, Renault India, on the other hand, started the year off with an update for its Kwid hatch.

Speaking to Autocar India on the sides of the launch of the MY24 Kwid and the rest of the range, Renault India MD and CEO Venkatram Mamillapalle said the company will keep the small car going for as long as they can. “We will keep this model (Kwid) going for a good period of time, because if you see there are only three models and two players in the segment so we want to offer customers a choice and good value.”

1. Renault Kwid with six airbags coming by mid-2024
2. Kwid to persevere without new generation or major overhaul
3. A segment in India has shrunk considerably

Indeed, the small car space is currently only serviced by Maruti Suzuki and Renault with regulation-driven cost pressures driving out most players. “Regulations do add value but yes, the A segment is taking a beating and I don’t know for how long it will be a sustainable segment. However, we will do our best to keep it in the market with updates” said Mamillapalle. 

One of the updates due is six airbags, which Mamillapalle confirmed to our sister publication Autocar Professional is scheduled to hit the market in six months. The development for this model was well underway with the government having hinted that it may make six airbags a mandatory requirement. However, even though this is now not the case, Renault says it will bring the model to the market as it needs to continuously update the Kwid to keep it going, especially since the hatchback will not see a new generation model. This is unlike its siblings, the Kiger SUV and Triber MPV, which will see new-generation models arriving with three years.

“It doesn’t mean we won’t do it, but as of now we have no plans of bringing in the new gen of the model (Kwid)” said Mamillapalle. “We will keep it alive as long as regulations allow because if you see, regulations defines what stays at what cost points.”

At present, Renault sells about 890 units of the Kwid per month and with this update, the company hopes to keep it alive a little longer. While that remains a challenge, the Kwid is indeed a very capable car and has, to its credit, the tag of being the most affordable car with a touchscreen and the most affordable automatic too. Customer interest, however, will also define how long the small car will be around and while there are significant volumes in the segment, on the whole, it is on the decline. From a 19 percent share of the overall market post-COVID-19 lockdowns, the share of A segment has dropped to about 9-10 percent today.