Renault is preparing the groundwork for its second phase of growth in India from 2015 which will see the new global small car become a reality. It is also expected to be the entry price model for the French automaker in a segment where the Maruti Alto is now the leader with monthly sales of over 20,000 units.

India will be the 'mother country' for this critical project, which could then find its way into other key growth regions such as Brazil, Russia, Africa and Indonesia. This will also be in line with the strategy of companies like Toyota which are leveraging its Etios compact car experience in India to work out a plan for countries like Brazil and South Africa.

Renault's project will be spearheaded by Mr Gerard Detourbet, often referred to as ‘the father of entry car programmes'. The global focus is only logical given that emerging economies, the growth drivers of the future, are increasingly opting for small and fuel-efficient cars. Keeping this in mind, the likes of Ford, Peugeot and Honda will have a greater play in India which is the world's largest market for compact cars.

Local R&D

In the case of Renault, its local engineering and design centre will be a critical part of this global strategy. The small car will also be the best piece of news to Indian ancillary suppliers who can ramp up capacities and use the advantages of economies of scale to meet the needs of other big markets.

Part of the Renault-Nissan alliance, the car will be produced on an all-new platform. At present, Nissan's ‘V' platform in Chennai is the pivot for the first stage of growth which will include compact cars and sedans for both companies. The Nissan Micra and Sunny are already on the roads while the Renault Pulse is the more recent entrant.

From the viewpoint of affordability, the new platform will give Renault the opportunity for a bigger play in a volumes-driven segment which will become increasingly competitive in the coming years. It is also a clear intent of what the term ‘affordability' means to the company. This definition is now closer to the Rs 3-lakh range and not the Tata Nano price segment which was Renault's thinking earlier for India.

For the moment, though, the company is giving top priority to 2012 which will end with five launches from its stable. The Fluence and Koleos are already out on the roads while the Pulse and Duster SUV will follow in quick succession. The last in line is the sedan though no official word is out yet on the subject.

“We are on course with our plans and will ramp up our dealer network rapidly. The idea is to be on the fast track while ensuring that customers get the best in quality and service. This is the beginning of an exciting journey for Renault,” Mr Marc Nassif, Managing Director of the Indian arm, told Business Line.

> gmurali@thehindu.co.in

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