Renault’s growth plan for India

Renault is giving the finishing touches to its India strategy, which will include the launch of five new models within the next five years. However, Renault is not planning a big-bang investment like Volkswagen and will take a more step-by-step approach to grow organically. The biggest challenge for Renault is to develop an all-India dealer network. This first step is crucial because after the break-up of the Mahindra-Renault joint venture, the French car maker doesn’t have a single dealer.

Marc Nassif, country general manager and MD of Renault India, admits that “developing the network is the most important thing for us. However, we have been pleasantly surprised with the interest in Renault from the dealer community.”

The plan is to have 70 dealers by 2013-14 which is the first phase. Renault’s first model will be the Fluence saloon expected by mid-2011 and followed six months later by the Koleos SUV. Both the Fluence and Koleos will be assembled from CKD kits in Renault-Nissan’s Oragadam plant outside Chennai. The Fluence and Koleos will be Renault’s flagships and are expected to be priced at Rs 12-13 lakh and Rs 16-18 lakh respectively.

Renault is also contemplating the Dacia Duster, the SUV based on the Logan platform. Known internally as H79, the Duster would have a ready supply base of Logan underpinnings including the 1.5 dCi or K9K diesel engine, which would allow it to be priced very competitively. And unlike the Logan, the Duster looks pretty good and if priced at around Rs 7-8 lakh would have many takers.

The big one for Renault is the small hatchback based on the V-platform that is shared with the Nissan Micra. Renault’s take will be a very stylish hatchback, expected only in late 2012, that will have more design flair than the cute but robust-looking Micra.

Sources within Renault have hinted that the tooling for the present Clio is available after it is phased out in Europe and could be shipped to India. The huge savings in tooling costs and other investments would allow the Clio to be competitively priced and could be positioned as a big hatchback at a bargain price. However, Renault may not want to take the risk of bringing a discontinued model for India.