Renault is all set to enter the Indian market with a new entry-level car, but will choose its timing and develop a concise strategy for it. Mr. Carlos Tavares, COO, who was addressing reporters in Chennai, stated that Renault was conducting a preliminary study of the Indian market and is in no rush to launch entry-level car in India. “If things work out, India will be the preferred market to kick off the project,” revealed Tavares.
According to sources, Renault is clearly targeting the big middle and high middle income segment of the Indian market and will position its early models around Rs.3 Lakhs. The preliminary research which is being headed Car entry strategic expert Gerard Detourbet, clearly indicates that this is the prime segment being eyed by the French automobile manufacturer.
Tavares stated that they could possibly study manufacturing cars below the entry car strategy at an even more competitive price and mentioned that Detourbet had the necessary mindset and experience to drive that kind of a program.
The models most certainly to be introduced are Logan, Duster (which could possibly the first introduction by Renault) and the Sandero. The models are aesthetically designed with no unnecessary “content or frills” and are the right models reflecting the market segment that they would be introduced in.
Tavares added that Renault has an accomplished history as “the most successful car maker” where entry cars were concerned in terms of pricing, design and manufacturing. “Gerard’s success and ability to make cost-effective products is very much linked to the Indian frugality. This combination of entry car abilities with the frugality of India works very well”, he said.
Tavares was all praise for the engineers in Chennai who would be joining Renault and mentioned that they understand “how to design things that meet one’s needs perfectly instead of a little bit more or less.”
Taveres stated the frugality of Indian engineers combined with the “program management and talent of Gerard” would be a winning combination. Tavares hinted that if all went well, India would be the feeder market for countries like Brazil, Russia, Indonesia and South Africa.
We want to go step-by-step and need to evaluate at each point if the project is feasible at the level of costs. We would be eager to start in India which is so value-oriented unlike any other market in the world,” concluded Tavares.