Renault India is on course to achieve 100 per cent growth this year and 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 weak rupee and increase in 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 1- lakh mark in 2016, thereby achieving 100 per cent growth and five per cent market share in India. We are only into our-fourth year and amongst the late entrants and we believe this will be a great achievement.”
Last year, the country’s automotive sector grew 8.5 per cent and Renault achieved 20 per cent growth. With Kwid added to its portfolio, the numbers are expected to swell quickly. 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 a month-mark next month, he said.
Speaking after the launch of its new dealership in Secunderabad here, Sawhney said, “The company has rapidly been expanding the dealership network and would be able to achieve a network of over 240 dealers before the end of 2016.”
Referring to the weak rupee, he told Business Line , “Automotive manufacturers are evaluating the impact of such a slide. This would force carmakers to consider a price hike.”
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.
Export potential On the 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 will be exported to SAARC, South Africa and some other right hand-drive markets.”
On Budget expectations, he hoped the Government will take some pro-active steps to encourage 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 the third largest by 2020, the Government should take a re-look at taxation, come out with the scrappage policy and extend some concessions to boost the sector,” Sawhney said.