Is Renault Ready For the Big Time With the Kwid?

The Kwid is being built on Renault-Nissan's CMF-A platform. CMF or Common Module Family is Renault-Nissan's take on what Volkswagen calls MQB - modular basket of parts that can be used across a wide range of models spanning varying body styles and sizes.

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Renault knows that any big success in India has to come from really achieving volumes in the small car space. It has had a good start with the Duster but hasn't had another hit in India since, though I can see that the Lodgy seems to hold some promise. So the success of the new small car will really decide the direction the brand takes in India in the near future too.

Ghosn has tried many routes to achieve this almost impossible dream. The first step surprised many as he knocked on the door of Bajaj Auto - and announced plans that had Bajaj developing the car, with inputs from Renault-Nissan. And the alliance was simply to market the product with the Renault badge.

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That plan fell apart when the 'car' in question turned out to be the anti-car as Rajiv Bajaj called it, and more a quadricycle as the world saw it. Next, Nissan's board green-flagged the Datsun revival - again for smaller, frugally built cars exclusively for emerging markets. And just when we thought that was the solution Ghosn had been seeking, there came plans to take CMF-A forward, with synergies on offer across the alliance. Inputs, for which, were sought from other partners like Ashok Leyland.

Datsun has met with a favorable response in Russia and Indonesia, but it's not off to a great start in India. So the Renault hatch needs to deliver. And deliver big. There is a favourable reputation and good brand awareness that Renault now enjoys due to the Duster's success. Now, the question is how to take all that equity into creating larger volumes for the brand.

The French brand has invested time and money into expanding its network which ramped up to 157 dealers in 2014-15. By the end of 2015 that number will go to 205 and 280 by the end of 2016. The dealer network and its willingness to really penetrate the market with good service will be the key to beating Maruti at its game.

What I will also be keen to see is what happens next with CMF-A. After all market trends dictate that Renault will have to have a pipeline of products like a subcompact sedan & SUV as well to play the volumes game in India. It is a space that will no doubt remain very hot for the foreseeable future, which gives the consumer even more choice. And that is always a good thing.