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Renault eyes 5% share of passenger car market in 2017

Our Bureau Chennai | Updated on January 16, 2018 Published on December 23, 2016

Sumit Sawhney, Managing Director and Country Head, Renault India, at a press conference in Chennai on Friday   -  Bijoy Ghosh

To start exports to Bangladesh, Bhutan, S Africa

Renault is confident of continued growth in 2017 after doubling its sales in the current year over 2015, and cornering a share of about 5 per cent in the passenger car market, said Sumit Sawhney, Country CEO and Managing Director, Renault India Operations.

In 2016, Renault’s car sales are pegged at 1.3 lakh units, against 50,000 last year. While its passenger car share has grown to 5 per cent towards the year end, for the entire year, “4.5 per cent is in the bag,” he said in an interaction with journalists here on Friday.

In 2017, the carmaker will not only consolidate its position despite a tough environment, but also increase its sales, he asserted. Demonetisation and the ensuing cash shortage have hit market sentiments, Sawhney added. While not hazarding an estimate, he said Renault’s growth will be powered by a new launch in the second half of the year and rapid expansion of sales outlets.

According to him, the success of the Kwid range — the 800 CC, 1 litre and the AMT variant — will also ensure growth along with the market enthusiasm for the novelty of the Renault brand. Industry growth is likely to be in “small single digits”, that too in the second half, after the shift to GST happens, observed Sawhney.

At present, Renault has over 270 sales outlets and 25 workshops on wheels; this will increase to 325 and about 50 respectively next year. Renault India is on track to launch one new model a year, said Sawhney. With each launch it will enter a new segment, will redefine that segment as much as the Duster did in SUVs, and drive volumes.

A high localisation of at least 80 per cent will be a feature, he added. Next year it will start exports to Bhutan, Bangladesh and South Africa. It now exports to Sri Lanka and Nepal.

Renault Selection, its used car business, will also be expanded to 50 outlets from the current 20.

Published on December 23, 2016
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