Renault on Plans to Make India its Export Hub for Ems
Groupe Renault is planning to make India an export hub for emerging markets (EMs) like Africa, Latin America and the Middle East stimulated by the success it got through the Kwid small car in Latin America and South Africa.
The company is on plans to get over 95% of parts from domestic vendors for its upcoming products in India, chiefly in the base market section, said one of the senior company executives. The authorized Renault showrooms in India are shaped properly which is its biggest advantage.
The plan is part of company’s goal to sell its automobiles at modest rates in its pursuit to make its market share double in India and reach additional 5% by 2021 while at the same time developing fairly-priced items for exports, said the executive.
The Kwid at present has a localization element of 96% however, it’s lesser for other vehicles like the Duster and the Lodgy.
India has the likeliness to be a exports spot as the Kwid has seen an unquestionable accomplishment in markets such as South Africa and also in few of the South-East Asian countries said the same executive.
“Apart from Kwid being a success in India, as a firm, we are stimulated by the demand in the emerging markets. Also, in continents such as Africa and other emerging markets, the behavior and choice of the local people are quite the same. In South Africa, the demand for Kwid is phenomenal and we should try to replicate the success in the future,” said the executive.
To reach its aim of making its market share twofold, Renault is on plans to unveil 2 novel mass market variants in the coming 2 fiscal years, said Renault India Pvt. Ltd managing director Sumit Sawhney.
Mr. Sawhney stated Renault will bring in new models in the coming days and the plan is how it can influence the nation as a center for exports.
The managing director said, “With the emerging market vehicles such as Kwid being immensely tolerable in Latin America and Africa, it is crystal clear that these markets are very sensitive regarding price and cost of ownership.”
However, in the domestic market, the automaker has been seeing a considerable weakening in sales owing to cumulative competition from the rest of the manufacturers.
He said the company is at present in a portfolio development state and is trying to augment its vendor base. The company has established names such as PPS Renault which is the Renault authorized dealer in Pune.
Explaining further he said, “India strategy is very clear and it is a very important market, we started with only one design center in India and now we have got two. We have probably the biggest engineering centre in India which may not be the case for a lot of other manufacturers. We used India to develop our supplier base.”
“Kwid singly had over 400 suppliers and currently we are using the country to export that car. Now we have new cars in the pipeline which will have a strong focus on India. The next products will even have high localization and as long as you have 95% localization it is fine,” he said.