India Will Be The Major Feeder, Feels Renault

By By: Vicky.in

Published: Thursday, October 20, 2011, 17:48 [IST]

The ongoing vertical trend of the Indian economy promises a lot to the industries in the country and the auto industry is the one which is promising to get benefited much. The French car maker Renault feels that the proposed launch of its six models in the country will take it to the 11th largest market in its global operations. The period for this feat is assumed to be 2013, said its Chairman, who briefed the company"s prospects in the European markets and Brazil, Russia. He said the Indian presence has given the company growth of nine fold in the bygone three years and this will make the company to reach further 20 places so as to make India the 11th largest for it. The target for the next two years is set as 3 million units since it has already made the sale of 2.6 million units in 2010. As of now the Renault has no business in the Indian auto market having not brought any suitable model for the Indian conditions, he added.

There will be the launch of its Koleos and Fluence in Chennai during this year and the localized SUV will be for 2012 in addition to compact versions on the Nissan platform, he added. Once the target of 3 million was reached by 2013, the next move will be to step into the expanding compact car segment in tune with the local needs. The company"s VP for sales and marketing said the small car will be on the top lines of ULC designed by Bajaj in alliance with Nissan. The JV between Nissan and Renault has invested Rs4500 crore for setting up a plant for this small car manufacturing in Chennai by which the capacity will be 4 lakh annual units. From this unit Nissan is manufacturing its fast selling Micra hatchback.

For Renault, said its Chairman, Brazil will be the second largest market (which is currently the third) in another three years while Russia is expected to get the number four slot in the event of gaining five spots. The overall sale volume in BRIC regions has steeped by 4 fold in the bygone decade and is nearly one third of the net global volume. The move to concentrate on these regions comes in the wake of the declining mode in the European markets by 2016. The European market has not yet recovered from the global recession stage as the sale volume in 2010 was 15.3 million units indicating a fall of 20% than the previous year. Renault said it will be investing Rs5.7billion euros during the next three years, of which France will get 40%.

Article Published On: Tuesday, February 15, 2011, 15:51 [IST]

Read more on: #anjana #automobile market #cars #renault

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