Saturday, August 22, 2015

Will Renault Fluence diesel become popular?

Renault is yet to make its mark in India and sales of its Fluence hasn’t been too encouraging, prompting the company to launch a diesel variant (which is usually very popular in India) for Rs 15.2 lakh (ex-showroom, Delhi).

The newly-launched Fluence will be powered by a 1.5 litre diesel engine, which will give a fuel economy of 20.4 km to a litre (that’s pretty good for a car in the Rs 15 lakh-bracket). The new dCi motor gets redesigned turbochargers and re-profiled fuel injectors.

The Renault Fluence diesel.
Renault India managing director Marc Nassif had said at the launch, “The Fluence was the maiden luxury offering from Renault in India. The new upgraded variant is a clear indication of our commitment to the Indian market and this move is in view of the feedback we got from our customers.”

Nassif added, “We have plans to roll out five cars by the end of this year. The next in line is our crossover Duster, which we plan to roll out before Diwali. The Duster launch will be followed by another new product.” 

He said all the company’s cars will be assembled at its production unit in Chennai.

He seems bullish about the Indian market and hopes that the company will sell a total 30,000 cars this year from only 1,500 cars in the previous year. That’s about a 20-fold leap and seems far-fetched.

To give a fillip to its sales, the auto major is also ramping up its dealership network to 100 this year from just 43 currently.

Renault Fluence is still almost unknown in India despite being a very sturdy car with great looks. And, to make the diesel as well as the petrol versions notch decent sales, the company must go on an ad blitz and also stress that Renault is the sister concern of Nissan (which is a popular brand in India).

The Indian car market is peculiar in the sense that new and comparatively unknown car makers could find the going tough even if they offer the best quality cars. But Renault, with the popular diesel variant in its stable, and an ad blitz, could try to woo the Indian customer.

This way, it could scale up its presence in the short term and go for brand-building in the medium to long term.

The new Renault Fluence will vie with cars such as the Volkswagen Jetta, Toyota Corolla diesel and Skoda Laura — all of which come for Rs 15.22 lakh-Rs 16.41 lakh.

But being an unknown brand in India now, it could have kept the prices low (about Rs 13 lakh-14 lakh) to accelerate sales substantially. Unfortunately, the company hasn’t done that and Rs 15 lakh for a diesel model of the Fluence is pretty steep and may not make it a very popular car in India now.

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