After facing tough market situation in Europe, the French car maker has plans to build cheaper cars for developing markets to gain stability. Renault is focusing on India which is a market with high potential. To accomplish this goal Renault has gone back to Gerard Detourbet who built Logan, a low cost mid range sedan for India.
The new car is said to compete with cars in India that fall in the price range Rs 2 lakh to Rs 3.5 lakh. This would be a tough challenge for Gerard Detourbet and his team considering competitors like Hyundai and Maruti Suzuki who have firm grip in this segment. Gerard Detourbet believes that winning this competition would open door for success of Renault in emerging markets in other corners of the world, where there would be comparatively less competition.
Although the company has only about 4% to 6% share in Indian car market it has seen steady growth in sales in the recent times. The launch of Renault Duster has brought improvement in sales numbers. In a portfolio consisting of only few models, this compact SUV Duster accounted to about 80% of total sales figure of the company during the month of November 2012.
With automobile manufacturers developing new cars in India that bear lower price tag, entry level segment will turn more interesting and affordable to customers.