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Renault Plans To Boost Growth
Aims to sell at least 1.5 lakh units per annum by 2022.
French automaker Renault has drawn up a mid-term plan to double its volume growth in India in the next three years to achieve profitability, said a top official.
“Our mid-term plan 2022 is aimed at doubling volume and market share through two new launches in 2019 and 2020 and two upgrades (Kwid and Duster),” said Venkatram Mamillapalle, managing director, Renault India.
He added that Renault sold 80,000 cars per annum and that it aimed to sell at least 1.50 lakh units per annum by 2022.
Mr. Mamillapalle, who took charge as India head some three weeks ago, said he was building a new line of products that would take some three years to become a reality.
Asked about fresh investment or capacity additions, he said the new product line was being made as part of a regular exercise and did not warrant creating a new plant as the existing facilities had enough capacities for the time being.
Stating that Renault had a total market share of 24%, he said he would be ‘happy if it was slightly better than 24%’.
New market segment
“Instead of chasing market leaders to grab market share, we are going to create a new market segment.At this stage, I can't give you further details,” he said.
The new products will be designed, engineered, developed and manufactured in India for India and India-like markets. Renault would not piggy-back on global products, he added.
To a question on which came first, growth or profitability, he said that growth and profitability had to be balanced. The focus would be to make dealer partners profitable which, in turn, would lead to Renault's turnaround, first by increasing the volume and offerings, he said.
On its readiness for BS- VI norms that take effect from April 2020, he said all Renault’s vehicles were future-ready and adhered to the government’s regulations.
Source : The Hindu
Image Source : Money Control
