Renault's New Small Hatchback to Focus on Small Towns

French car maker Renault is expanding presence across smaller towns in the country as it prepares to tap the mass market segment with its upcoming entry level car next year. The company, which is set to launch its first multi-purpose vehicle (MPV) 'Lodgy' in India next year, is seeking to strengthen its sales infrastructure in the high-growth smaller towns of the country.

Also Read: Renault's Upcoming Cars in India - Year 2015

"We are looking to increase our presence in tier II-IV markets which will play a key role in growth of automobile industry in India, and our A-entry (small car) will play a key role in meeting this objective," Renault India Country CEO and Managing Director Sumit Sawhney told PTI.

Elaborating further, he said Renault's focus in 2015 will be on introducing two new products - the MPV segment and the small car to have a play in the entry level segment, which is the heart of the Indian automotive industry. "We are taking major steps to increase our presence in India and will be entering the volume and growth segments to strengthen our position in India," he added.

Commenting on the new MPV Lodgy, he said, "With the launch of our MPV, we plan to offer customers a unique value proposition and create a niche in the segment, like we did with the Duster."

Renault India currently sells five models - Pulse, Scala, Duster, Fluence and Koleos, priced between Rs 4.46 lakh and Rs 25.99 lakh (ex-showroom, Delhi).

Stating that the company would continue to drive its growth journey in India, Sawhney said: "Renault has a clear cut plan chartered not only for 2015, but we are looking at a long-term horizon and working on our product strategy for 2016 onwards as well."

Commenting on the domestic market conditions, Sawhney said the super compact, vans, and utility vehicles are the only segments to register growth this year, while there was a sharp decline in the sales of premium and luxury vehicles.

"2014 was a mixed bag for the automobile industry in India. We saw a few good months when the industry recorded positive growth and a few challenging months with negative sales trends," Sawhney said.

While the overall environment was challenging, the company saw that new car launches had a positive rub-off on sales.

"Companies who introduced strong new products were ahead of the curve. Manufacturers that stood out showcased that a challenging business environment provides the opportunity to innovate and still be successful," he added.