Renault's short term plans

Renault is targeting to increase its market share from 2% to 5% within the next 2-3 years. The company strives to bring in cars that can generate high volumes as well as profitability while catering to the mass market segment.

The first car to hit Renault showrooms in 2015 will be a small car (codenamed: XBA) which will be priced <Rs. 4 lakh. The car will be based on the Common Module Family or CMF platform developed by Renault-Nissan Alliance. The car is likely to be powered by a petrol motor only as the car's engine bay has been designed to house Renault's BR series of engines.

If the manual ORVMs and the 3 wheel nuts (instead of 4) of the test vehicle are anything to go by, cost cutting will be to a greater extent. More so, since the XBA is likely to be positioned below the Datsun Go. Eventually, Nissan's small car (codenamed: I2) will also be based on the same platform, under the Datsun brand. India will be among the first markets of this global car.

The launch of the 'Lodgy' MPV will soon follow. It will be based on the MO platform which is derived from the BO platform of the Duster. Renault's 1.5 litre K9K diesel motor is likely to power the Lodgy. This will be Renault's contender to take on the Maruti Ertiga and Honda Mobilio.

To tackle the volume players like Maruti Suzuki, Hyundai and Honda, Renault will also need to strengthen their sales and service network. The company aims to have 175 dealers across India by March 2015. Production capacity at the Renault-Nissan alliance plant has been increased by 20% to 4.8 lakh units per year. At the moment Renault has 5 cars on sale in India, but it is only the Duster which drives sales for the company.

Source: Financial Express