Renault India aims to garner five per cent market share by 2016

Renault India has firmly set its sights on getting a five per cent market share by 2016. It aims to achieve this mark by expanding its outlets and service centers as well as entering the volumes segment with a new budget car which it will unveil on May 20.
Speaking to CarWale, Sumit Sawhney, CEO and MD of Renault India, said the company aims to have 205 outlets by the end of the financial year a big jump from the current 157. It further aims to take this number to over 280 outlets and 305 service centres by the end of 2016. It currently has a major presence in tier-1 and tier-2 cities and is expected to get a majority of its expansion push by opening touch points in tier-3 and tier-4 cities.
In terms of models, it has already launched the Lodgy MPV and will have the global unveiling of the XBA hatchback which is expected to have a sub Rs 4 lakh price tag and will be their main strength when it comes to volumes. The car will have a high level of localisation in a bid to keep the costs down and will be first produced solely for the domestic market before deciding on exports.

It has now been close to 20 days since the Lodgy was launched for the Indian market and so the company is not ready to comment on the MPV’s numbers just as yet. However, it expects good volumes for the MPV and projects double digit growth for the segment overall. Currently, the French manufacturer’s strongest seller has been the Duster which since its launch in July 2012 has retailed over 1.25 lakh units.

The French automaker had also announced last year that it would be entering the second-hand car business. It currently has a dedicated team looking into the prospects of the business and will make an official announcement later this year regarding its plan of action.
This business will take the route of multi-brand retail in addition to the Renault models and will most likely operate from the existing facilities that the company has in place. Its justification for an early entry into the pre-owned car market is that it wants to have all facilities ready in place in anticipation of further demand.