 "We are eyeing 5% market share by 2016: Sumit Sawhney")
French major Renault, which is eyeing 5% market share by 2016, has roped in actor Ranbir Kapoor as brand ambassador to drive growth. The company said it will also export Made-in-India cars to neighbouring countries. Sumit Sawhney, country CEO and Managing Director, Renault India Operation talks to T E Narasimhan about the company's India plans. Edited excerpts:
What is the idea behind roping in a new brand ambassador?
We are now getting into the next phase of growth and have very ambitious plans for India. Renault is a very young brand in India, though globally it is over 117 years old.
We wanted to communicate Renault's message, which is passion for life. Ranbir Kapoor embodies the brand's traditions and portrays an unusual mix of class, talent, popularity and intelligence, which matches up to Renault's legacy.
What is the next phase of growth?
Currently, Renault's market share is 1.9%. In the next two years, we want to achieve 5% market share in the Indian passenger car market. This translates to volume of 1.40 lakh to 1.50 lakh units compared to 50,000 units now. We will be ramping up our volumes in the next phase.
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Does Renault have enough products and network to achieve this target? Which products will drive this growth?
Renault's growth was mainly driven by Duster. Kwid, which was showcased in May, will soon make its way into the country. We expect Kwid to drive the volumes largely. Other models Renault presently offers are Pulse, Scala, Duster, Koleos and Lodgy MPV.
The company will also increase its network to 280 to increase its penetration in the country.
Manufacturing is not an issue as we have enough capacity at Oragadam, near Chennai.
Major OEMs are increasing localisation levels to bring down prices. What is Renault's plan?
Kwid is highly localised at about 98%. For other models, the localisation level is around 70%, which will be increased to 80%.
What is Renault's export strategy?
Exports are rather insignificant currently since domestic market is key for the company. At the same time we are exploring all opportunities in terms of exports, especially to right hand drive markets. As a first step, we are getting into neighbouring markets - Sri Lanka, Nepal and Bhutan - and will follow it up by other right hand drive markets.