Renault to launch MPV, small car in 2 years

Renault India will launch a multi-purpose vehicle and a small car over the next 24 months to increase its offering from five cars to seven. While the small car will be built on the new Common Module Family-Affordable (CMF-A) platform that is under development and will take 20-24 months, the MPV will happen earlier as it will be a badge engineering of the Nissan Evalia that is already on the road.

Speaking to TOI, Renault India executive director (marketing) Sumit Sawhney said the company will increase the width of offering to seven to eight products in the next two-three years. "Renault India has introduced five products in 18-20 months. The next 24 months will see introduction of two products and consolidation of the market," he said.

While Renault-Nissan chairman and CEO Carlos Gosn has already talked about the innovative and competitive CMF-A platform, Sahwney said the MPV was under development. Renault India currently has two SUVs: Koleos and Duster; two sedans: Fluence and Scala; and small car Pulse. Of these, three are badge engineered: Koleos-X Trail, Scala-Sunny and Pulse-Micra. A badge engineered Nissan version of the Duster christened Terrano will be launched soon.

"We are the fastest growing nameplate in the country with sales of 35,000 units in the second year of operation. We will continue to target doubling the volume year-on-year though the environment in the current year is extremely challenging. The automotive market is down 10% while the MUV/SUV market crashed 18% in July," said Sawhney.

Though the sales in August 2013 recovered slightly to end with a 13% sales deficit against August 2012, Sawhney put up a brave face and said Renault sold more SUVs this August against last August. He, however, made it clear that if the market did not rebound in the next 12 months, the industry would go into a tailspin if the government did not intervene. Automobile and related industries contribute 8-10% of GDP.

"High interest rate, hardening of fuel prices and volatility in forex has led to people postponing purchase. The government requires measures to revive the market. Society of Indian Automobile Manufacturers' has urged the government to consider a scrap policy to not just decongest roads but put more fuel-efficient and environment-friendly cars on road," he said.

While a scrap policy exists for commercial vehicles, Siam wants it to be extended to privately-owned cars as well. Several countries have a scrap policy for cars beyond 8-10 years. Sawhney suggested that a 15-year scrap deadline could be adopted, arguing that owners now change cars every four-five years. "These cars can be sold for use in non-metro markets with lesser vehicular population," he pointed out.

But with general elections slated next year, the present government is unlikely to accede to the request given the sensitivity of the matter.