Renault India today said it is on course for a 100 per cent growth this year and expects to achieve 5 per cent market share, a year ahead of its initial plan.
The French automaker also hinted that there is potential to hike prices given the weakening of rupee against the dollar and hike in the input costs.
Sumit Sawhney, Country Head and Managing Director, Renault India, said, “The company closed last year (2015) with domestic sales volumes of 54,000 units and expects to cross the one lakh mark in 2016, thereby achieving 100 per cent growth and five per cent market share in India by 2016 itself. We are only into our fourth year and amongst late entrants and we believe this will be a great achievement.”
Last year, the country’s automotive sector grew by 8.5 per cent and Renault achieved 20 per cent growth. However, with Kwid added to the portfolio, the numbers are expected to quickly swell. Kwid is addressing a segment which accounts for 25 per cent of the country’s car market. It is expected to hit 10,000 units per month mark next month, he said.
Speaking after the launch of its new dealership in Secunderabad here, Sawhney said, “The company has been rapidly expanding the dealership network and would be able to achieve a network of over 240 dealers before the end of 2016.”
Referring to rupee weakening against the dollar and sliding to Rs 68.5, he told Business Line, “Automotive manufacturers are evaluating the impact of such a slide. This would force carmakers to consider a price hike, without giving details of the quantum of hike.”
NEW LAUNCHES
Referring to the upcoming models, Sawhney said during the New Delhi auto show, Renault had showcased two new Kwid models with different engine options. The platform on which Kwid has been built is versatile and provides flexibility to consider more models, he said.
The Duster too is expected to be upgraded with new 4x2, a 4x4 and a six-speed automatic transmission version.
Mentioning about export potential, the Renault India MD said, “Exports too are likely to go up during the year. The Kwid is expected to go places and will be manufactured in Brazil with parts supplied from India. In addition, India built cars would be exported to SAARC, South Africa and some other right hand drive markets.”
On Budget expectations, he hoped the Government would take some pro-active steps on encouraging the growth of the automotive sector as it has a huge bearing on the economy and job creation. “With the Indian auto market expected to become third largest by 2020, the Government could have a re-look at taxation, coming out with the Scrappage policy and extend some concessions to boost the sector.”