Renault Cars in India
Renault in India
Renault is a French automobile manufacturer, which presently manufactures cars, trucks and vans. In the past, the organization also produced tractors, trucks and autorail vehicles. Renault has a tie-up with Nissan and this alliance is the third largest automobile manufacturer of the globe.
One of the world’s leading car manufacturers, Renault is now planning to enter India in 2011, independently. Renault had earlier sold the Logan in India through its partnership with Mahindra.
Renault History and Launch
Renault Societe Anonyme (S.A) was launched in 1899, starting off with the Renault Voiturette 1CV, the first Renault car. This first car gained publicity by winning various city-to-city races, allowing the company to expand its production.
The Renault organization was started by founder Louis Renault and his two siblings Marcel and Fernand. Louis and Marcel ran the company operationally but unfortunately Marcel died in 1903 in a Swiss race accident. During 1906, Louis remained the sole leader after his other brother Fernand also retired due to health reasons.
During the pre-war period, the Renault organization started manufacturing buses, taxis, cars, and commercial cargo vehicles. Then, during World War I (1914 -1918), the company started producing military vehicles and airplanes, as well as tanks such as the Renault FT-17 tank. At the end of World War I, Renault was the largest vehicle manufacturer of France.
In 1918, Louis Renault expanded the Renault organization by producing machines for industries and agriculture. Workforce and stock market problems affected company’s growth. Renault started its search for distributors and in 1920 he found his first distributor Gustave Gueudet, who was Northern France entrepreneur. This set off a new phase of growth for the company.
During World War II, after the surrender of France in 1940, Louis Renault manufactured Trucks for the Nazi Germans. As a result, Allies attacked Renault in 1943 and Louis Renault was charged for collaborating with Germans. He died in 1944 in prison itself.
In 1945, Renault was nationalized under the name of Regie Nationale Usines Renault and it became a French Government organization.
In 1961, the Renault 4CV successfully competed with Volkswagen Beetle and Morris Minor and the company sold half a million units since its launch. Renault 4 and Renault 8 were other successful models of Renault that launched in the year 1961. The Renault 5 was launched in 1972, an economical and compact car whose production lasted till 1984.
During the early years of 1990s, Renault launched few successful models that include Clio, which was launched in 1990. Few other successful models of Renault during that period are second-generation Espace and Twingo, which was introduced in 1992. Renault Megane and Renault 19 were successful models in the middle of 1990s and achieved four star ratings for safety. All-new Renault Clio was launched in 1998.
In 1996, Renault’s operations were privatized and in 1999 Renault and Nissan entered into an alliance, which was the first such alliance between French and Japanese companies. Renault acquired a 36.8 % stake at US $ 3.5 billion in Nissan and Nissan a 15 percent stake in Renault. Renault also bought 99 percent stake of Dacia, a Romanian car Company in the same year.
Renault vehicle industrials and Renault Trucks became part of Volvo Trucks from 2001. Though Renault operation was minor compared to the Volvo Group, it controlled 20 % stake of Volvo group.
Recent launches include the Renault Laguna, which achieved five star ratings and in 2004 the Renault Modus achieved the same ratings.
The Renault-Nissan Alliance turned out quite successful in the world market in as it sells over 6M units each year.
Renault Launch in India
Renault was launched in India in 2005 in partnership with Mahindra & Mahindra. In order to make Renault cars affordable, in 2008 Renault-Nissan in parallel entered into a joint venture with Bajaj Auto to manufacture and sell an ultra low car, whose entry-level price will be 2500 USD. India would be the main market for the Renault ULC and the car would be sold in other emerging markets subsequently later on.
Renault is aiming to fix its position among Maruti, Hyundai, Tata, Ford, Fiat, Chevrolet, and Honda, the leading automobile manufacturers of the nation. With that mind, Renault has set aggressive plans for India, both independently and through partnerships.
Nissan-Renault Alliance has chosen Chennai as its key base, and has set up manufacturing capacity with of 4,00,000 units per annum. In four years time, Renault will launch its full range in the nation maximally leveraging its set-up in Chennai.
Renault Dealer Network in India
Initially, Renault will have seven to eight dealerships in major metros and later on it will launch Renault dealerships in small cities as well. By 2012, the company expects to have a good dealership network in India – at least 35 cities will have Renault dealerships in the country by this timeframe.
By 2013, Renault is aiming to introduce 70 Renault outlets in India in tier I and tier II cities.
Renault Future plans for India
Renault has announced at the Auto Expo 2010, New Delhi that the company is planning to launch most of its global models in India in four years time and that they will be manufactured at its Chennai plant. In 2011, the company is planning to launch Fluence and Koloes.
Renault also announced that between the years 2011 and 2013, the organization is planning to launch a total of five models in India including a compact car as well.
Renault India’s MD and General Manager Marc Nassif explains about Renault’s future plans, “We are extremely happy with the response that we have got from entrepreneurs who are eager to associate with us in driving the change that Renault intends to bring in the Indian automobile space. What is especially heartening is that the flood of dealerships enquiries has been coming to us ever since we made the first announcement in January. It definitely speaks volumes about the strengths of the Renault brand".
He also added, “We certainly have a detailed ramp up plan for this year, which essentially sets the base for the products to come between 2011 and 2013. Branding becomes one of the key pillars to this challenge and we are looking for agencies that can work with our Marketing team to come up with the most innovative and out-of-the-box ideas to build the Renault brand in India"
Renault Car Models
Renault Fluence and Renault Koleos will be the first models of Renault to be launched in India.
Renault Fluence is a premium sedan that will launch in the middle of 2011. The cost of Renault Fluence will be somewhere between 12 and 14 lacs. Renault Fluence competitors will be Honda Civic, Toyota Corolla Altis, Chevrolet Cruze and Maruti Kizashi.
Renault Koleos is supposed to be launched in India in October, 2011. The Renault Koleos is a compact SUV and its price will start from 20 lacs. Renault Koleos will compete with Honda CR-V, Toyota Fortuner, Mitsubishi Outlander, Ford Endavour and Chevrolet Captivia.
Apart from that, Renault also has planned to launch three more models between the years 2012 and 2013. Of these, one will come be a hatchback and the other model will be an ultra low cost small car model.
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