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French auto maker Renault on Tuesday made some major announcements for its next growth trajectory in the Indian market.
The company confirmed that it will stop diesel models post BS-VI era. It will phase out its MUV Lodgy, consolidate UV (utility vehicle) market share with a new sub-4 metre SUV launch next year, foray into electric vehicle in 2021 and ramp up dealer network expansion with a focus on their profitability.
Venkatram Mamillapalle, Country CEO & Managing Director, Renault India Operations, said the company’s recently- launched SUV Triber received an overwhelming response in the domestic market with its retail sales crossing 20,000 units since the launch. Triber along with the new Kwid has provided the much-needed relief to its dealers at time auto dealers across the country are battling with inventories and losses.
To build on the sales momentum, the company will launch Triber's BS-VI version next month and AMT variant by March-end. “There will be a price correction for Triber due to BS-VI, but it will not be significant,” he said.
Focus on Triber
During the first six months of calendar year 2020, Renault India will provide a stronger focus on boosting the sales of Triber as the vehicle has not reached many areas in the country. It sees bright opportunities to hit a sales mark of about 40,000 units for Triber in 2020.
“Most of the current sales of Triber are accounted to by semi-urban areas with southern region contributing strongly. Cost and inside space were among the key attractions in Triber. Replacement buying accounted for 38 per cent in Triber sales,” he said.
The second half of 2020 will see Renault India introducing an all-new compact SUV to further strengthen its position in the UV market. It is also looking at launching its electric car by the end of 2021 or in early 2022 in addition to a new model. It will wait for the ecosystem for EVs with necessary infrastructure to develop during this period.
Mamillapalle confirmed that Renault India would not have diesel line up after April 1, 2020. It will not make its K9K diesel engines that powered some of the models such as Lodgy. All its models, including the current models, will have only petrol versions. Due to lukewarm response and diesel engine phase out, the company has stopped making its multi-utility vehicle Lodgy.
Dealership expansion
The company also plans to ramp up the dealerships to 350-370 by 2022 from 260 plus now. Actually, it had planned to increase the network to 290 plus this year. But it did not happen due to slowdown in the automotive market.
Encouraged by the strong response in India, the company on Tuesday started the export of Triber to South African market. It will ship about 600 units of the vehicle and based on the demand it will work out further exports. It is also evaluating opportunities in markets such as Indonesia and African region for Triber exports. “Actually, we didn’t plan export of Triber this year, But, good sales in India have made us commence the shipment this year itself,” he said.
The company has already exported 10,000 units of its hatchback Kwid to South Africa this year.
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