Renault bets on cheap car with high-end features in India
MUMBAI (Bloomberg) -- Renault is expecting to succeed where its coalition partner, Nissan, has stumbled with Datsun by introducing a low-cost new hatchback in India with upscale characteristics to challenge the dominance of national automaker Maruti Suzuki's Alto, the country's best selling auto.
To better compete with competitors the Kwid comes with the airbag choice and navigation capabilities, neither which are frequent in the nation's best selling tiny vehicles.
"We anticipate this vehicle to be a-game changer for Renault India," Renault Nissan CEO Carlos Ghosn stated at the Kwid's unveiling in Chennai nowadays. "India isn't a simple market. We're learning our way," he mentioned.
Renault has additionally given the Kwid an SUV appear using a large (180mm) ground clearance, large seating position and quick front and rear overhangs. The Kwid is somewhat bigger in relation to the Renault Twingo at 3.68 meters long and 1.58 meters broad. The automobile is underpinned by Renault and Nissan's Typical Modular Family A stage.
The Kwid mini-car will likely be priced beginning at 300,000 rupees ($4,700). By comparison, the Alto begins at 246,163 rupees.
Ghosn stated the Kwid will go on-sale in September and it's going to be a huge contributor to Renault's increase in India.
Renault plans to increase its nearby market-share to 5% by the end-of 2016 from 1.7% in the 12 months finished March, helped by the Kwid, which will be its most economical version.
Nissan had similar aspirations when it started selling the initial version of its own revived Datsun brand, the Go, in India a year ago. Ever since then, Nissan has offered about 16,000 of the hatchbacks in the nation, according to figures from the Society of Indian Automobile Producers -- under the amount of Altos offered in a single month.
"The section is quite cost sensitive," mentioned Amit Kaushik, principal analyst at IHS Automotive in New Delhi. "It is going to be extremely tough in the absence of Renault having a powerful network or rural achieve, which will be where this section sees the majority of its own revenues."
Renault is expanding its supplier network in India, and will nearly double its spread to 280 revenue retailers by the end-of 2016 from the present 157, Ghosn stated. In contrast, market-leader Maruti has 1,500 factory outlets and gets about 30% of its revenues from rural India.
The Kwid h AS SUV styling cues in the back such as the black trimming lower fender.
Car makers in India are progressively seeking to include high end characteristics to to focus on aspirational buyers who would like much more than a low-cost ride.
On Tuesday, Indian auto-maker Tata Motors declared an automatic variant of its own little Nano automobile. The Nano, touted as the planet 's most economical auto, has fought to find purchasers. The automatic variant begins at 269,000 rupees in New Delhi and targets city customers rather of its initial goal demographic of scooter riders seeking to purchase their first automobile.
Reuters and Automotive News Europe contributed to this report
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