Reference Auto

Well, the tie up and turmoil in its relationship with Mahindra and Mahindra has put the spotlight on Renault in India, making it a somewhat known brand but can Renault cash in on this and see that its newly launched Fluence revs up its revenues in the Indian market?

In fact, Renault is upbeat on India and has lined up grand plans: It wants to source components worth Rs 600 crore within a year, will also launch a sports utility vehicle or SUV Koleos this year and is planning to roll out three more cars. But all that will depend on how the Fluence sells.

Fluence is Renault’s first branded car in the country being assembled at its Chennai facility and will come in both petrol (two-litre engine) and diesel (1.5-litre engine) versions, with the price tag being between Rs 12.99 lakh and Rs 14.4 lakh.

This will be Renault’s first solo launch in the Indian market and the company is ensuring that customer experience doesn’t turn out to a bitter one with the Fluence as it could make Renault’s India journey a bumpy one.

Renault India managing director Marc Nassif said, “The Fluence has been designed keeping in mind the Asian market and we are confident that it will not only rattle the (Rs 12 lakh-Rs 14 lakh) segment, but also give the Indian customer its first taste of what Renault is capable of producing.”

The sales figure for the Fluence is impressive. In 2010, Renault could sell 1.30 lakh Fluence cars in the global market.

Renault is betting big on India to drive earnings. Nassif averred, “India is one of the three strategic markets in Renault’s international operations. We aim to sell 100,000 cars by 2013 and are upbeat on becoming among the top three international automakers in India.”

Renault has a global tie up with Nissan of Japan. Renault plans to infuse Rs 4,500 crore in the Chennai unit within a span of four years.

With the investment, it wants to raise its capacity by ramping up production to a whopping four lakh cars annually. It has also lined up plans to set up a Renault DeSign Studio in Mumbai and a global logistics facility in Pune.

Renault India deputy managing director Sudhir Rao said, “Against our plan to begin with eight dealer outlets, we have 14 fully operational dealers. By 2011, we will have 40 dealers across the country. We will have a full range of five cars and 100 dealerships by 2012.”

He added, “In 2010, Renault had sourced components worth euro 35 million from India. This year, it will more than double to euro 75-80 million. By 2012, it could touch euro 100 million.”

On the company’s tie up with Bajaj Auto to produce the ultra low cost or ULC car, Nassif said, “If ULC is in our DNA, we will go ahead.”

It seems Renault is in a hurry to shore up its India operations. Should it not first test the Indian market with the Fluence and may be a couple of other models before accelerating its presence and investment in the country as it is yet to become a mega brand in India?