RENAULT KWID
How has 2015 been for Renault in India?
2015 has been pretty exciting for us. The most important launch for us of this year has been Kwid. First, getting into a category that contributes almost 24% of the total volumes of the industry. Plus, this has been a global launch. We revealed the car in May in Chennai, and it was a global reveal with Indian and international press. Post that, we launched the car in September. That too was a global launch. This is a world car, which Renault has launched first in India. And the most important part is that it’s 98% local – no manufacturer has ever achieved this, and that too in the entry-hatchback category. So it’s been pretty exciting for us, and the response that we’ve got for the Kwid has been fantastic.
It’s a new price-point for you as a company. How have you achieved that, and how have you had to adapt your processes and development to bring out something at this price-point?
To create a global car like this – and the reason I’m repeating global car is because there’s nothing that’s been compromised in this car. It’s been developed to be sold in different markets across the world, and to meet the different safety and technology criteria. So, the Kwid hasn’t just been a launch for us, it’s been a completely new thought process – a new way of thinking about making cars. And the innovations in the car have really helped us to give something extra to the customer that wasn’t present in this category. We’ve been able to bring out this car thanks to the localisation. We wanted to enter this category in a very strong manner, hence the innovations and the price-point.
So what’s the initial feedback been?
Almost two weeks ago, we made the announcement that we’ve crossed 50,000 customer orders. So, orders are flowing very well for us, and we’re also working to ramp up the production and meet the customer demands. The positive point is that we have a plant that is capable of delivering. We’re also working with our suppliers to increase our production.
Will the successful rollout of the car like this mean that there’ll be more input from India for even global platforms and products?
We’ve created a big base here in India – with a plant, a technology centre that has more than 5,000 people, and two design centres. So India is a going to play a key role in supporting Renault – not only in India, but Renault global operations as well.
When are we likely to see the face-lifted Duster, and are you planning a smaller SUV as well?
I can’t share the exact timelines, but you’ll see a lot of action from our side on the Duster. The Duster has been able to prove itself as a very strong SUV. All the Duster customers are happy customers. Yes, new products come in and they have their own novelty value, but the Duster is a long-term brand for us – so you’ll see more news next year for sure.
As far as new products are concerned, it’s important for us to identify the right segment. Not only do we want to enter segments where we’re not present, but the important thing is to try and create sub-segments for ourselves. You saw that with the Duster, and you’ve just seen it with the Kwid as well. So we’re exploring all these opportunities, and you’ll hear much more from our side. Because, if you aspire to have 5%, and then 8% market share in the long term, then you need the right portfolio. So, we’re evaluating important segments as well as emerging segments. For instance, SUV’s shot up all of a sudden with the Duster, then flattened, and are going up again with new launches. Indian consumers have a lot of flexibility – they have the ability to quickly shift gears from one segment to another.
People who are buying the Kwid – and this is real-time input – one-third are graduating from two wheelers, one-third are already driving a car and replacing their cars with the Kwid, and one-third are buying the Kwid as a second or third car in the family. The acceptability brand is quite wide, and the acceptance between genders is also very strong.
This segment has been one of the most challenging segments in the country. Any manufacturer who’s tried to venture into this segment has seen big challenges. So I think a great product is important, but the credibility that we’ve built over the past three-and-a-half years (with the Duster) has also helped us realize the great success that we’re seeing today.
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