Renault is working on developing a new small car that will be priced close to Rs. 3 lacs. The French auto major is taking one step at a time in order to ensure that the final product is not a rushed job, but a carefully crafted car that appeases the key demographics.
Regarding this project, Carlos Tavares, Chief Operating Officer of the company, said, “At this stage, it is a preliminary study and we need not push the button yet but, hopefully, we will do so eventually. If things work out, India will be the preferred market to kick off the project.”
Set to be launched as an entry level hatchback, the upcoming car will be important for the prospects of the company in the cost-conscious domestic market. Gerard Detourbet is leading the team that is conducting this study; he has been the head of the entry level car strategy for the manufacturer for the past few years. He contributed towards the development of models like Logan, Sandero and the soon-to-be-launched Duster. As per Renault, these cars do not have any unnecessary features, have been designed very carefully and are in sync with the conditions of the markets they are sold in.
Tavares commented, “We could possibly study manufacturing cars below the entry car strategy at an even more competitive price and the guy who has the skills to drive that kind of a programme is Gerard Detourbet.”
He further said that Renault holds the distinction of being the most successful car manufacturer in the entry level segment in the context of design to cost/manufacturing in emerging markets. “Gerard's success and ability to make cost-effective products is very much linked to the Indian frugality. This combination of entry car abilities with the frugality of India works very well,” stated Tavares.
In developing the new car, Renault's Chennai-based engineering centre will prove to be crucial. About this, Tavares said, “People here understand how to design things that meet one's needs perfectly instead of a little bit more or less.” He feels that the company will gain by harmonising the frugality of local engineers and Gerard's skills. However, he understands that this will not be an easy task, but also believes that the model will be ready for many other markets once everything is in the position.
Renault's vehicle will be the second time that it is looking towards small cars after the RE 60 that it assigned to Bajaj Auto. While Nano was the obvious inspiration for this car, the under-development car will be positioned alongside Maruti Suzuki Alto and Hyundai Eon.
