 "Renault shifts gear to fast-track growth")
Earlier, it had planned to open 30 outlets in 2016, but is now revisiting the plan. If it opens 60 outlets, its total network strength in the country would be 270.
“We are seeing a great response to Kwid from cities as well as smaller towns. We had earlier set a target to reach 240 outlets by end of 2016. But now we will increase it to 270 by end of the year,” Sumit Sawhney, the chief executive officer and managing director for Renault India told Business Standard. Sawhney said the additional 30 outlets could be in tier-III and –IV towns.
Unlike its sports utility vehicle Duster, which is mainly metro-centric, Kwid has seen response from all states.
Launched in September last year at an aggressive price of ~2.56 lakh on the back of a 98 per cent localisation (components sourced locally), Kwid is competing with Alto, the popular entry-level hatchback from country’s largest car maker Maruti Suzuki.
The SUV-styled hatchback has also found a place in the top 10 sold cars in the country. A total of about 9,500 units were sold in May.
With more than 120,000 bookings, those who want to buy a Kwid have to wait for three to four months. The company has introduced a third shift at its plant in Chennai early this year and will be looking to produce a total of 10,000 Kwid a month from July.
Kwid has also changed the fortunes of Renault in the fast-growing Indian passenger vehicle market.
Its market share improved from 1.66 per cent in FY15 to 2.57 per cent in FY16. In April, its share stood at five per cent.
“We are already the largest European brand in the Indian car market. We hope to close this year with a market share of five per cent,” said Sawhney.
India has also become one of the top 10 markets for Renault, which is mulling exporting Kwids to Sri Lanka. It will also look at other markets in South Asia.