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Customer LoginsRenault India developing MPV, sub-four-metre sedan, and SUV on modular platform
New products will put Renault in direct competition with India's market leaders, Maruti Suzuki and Hyundai.
IHS Automotive Perspective
- Significance: Renault is working on developing a new set of vehicles for India, including a multi-purpose vehicle, a sub-four-metre sedan, and a compact crossover, according to a report by the Economic Times.
- Implications: Including exports, the automaker is targeting annual sales volumes of 150,000-200,000 units, divided among the three models.
- Outlook: IHS Automotive foresees a strong product pipeline for Renault in the coming years, but it will need to expand its retail presence in the country.
Renault is working on developing a new set of vehicles for India, including a multi-purpose vehicle (MPV), a sub-four-metre sedan, and a compact crossover. These vehicles, to be introduced over the next three years, will be based on Renault's modular CMF-A architecture, according to the Economic Times, citing five component vendors. These vehicles will reportedly be priced below INR800,000 (USD12,027), enabling Renault to mount a renewed bid for higher market share in India's volume segments. The report adds that the French automaker has started working on a slightly modified version of its modular platform. The platform, called CMF-A+, can accommodate a wider body and more powerful engines.
The evolved CMF architecture will underpin Renault's upcoming MPV, codenamed RBC, which will compete with Maruti Suzuki's Ertiga, says the report. The platform will also spawn a sub-four-metre sport utility vehicle (SUV) and sedan. The compact SUV, to compete with the likes of the Ford EcoSport and Maruti Sizuki's Vitara Brezza, is codenamed HBC. A compact sedan, codenamed LBC, is also in the works. "The MPV RBC is more or less finalised on the design front, whereas the sub-four-metre sedan and SUV are at a conceptualisation stage," the report quotes one of the five vendors as saying.
As well as catering to domestic sales, these vehicles will be exported to select overseas destinations, akin to the Kwid hatchback. Including exports, the automaker is targeting annual sales volumes of 150,000-200,000 units divided among the three models, says the report.
Outlook and implications
Renault's plan to use the versatile CMF architecture to launch more vehicles is well known, but the latest report offers more details in this regard. Earlier this month, Renault-Nissan chief Carlos Ghosn indicated that more products based on the architecture would be developed, although he did not disclose any further details.
According to IHS Automotive forecasts, the platform will underpin Datsun's upcoming redi-GO hatchback, as well as Renault's A-segment van that is likely to make its debut some time in 2017. IHS Automotive foresees a strong product pipeline for Renault; the new models, except the small van, will be based on the CMF-B and other platforms. Important among the new models will be a B-segment SUV, scheduled to be introduced in 2019. The Duster's switchover to the CMF-B platform is also scheduled for 2019, and most of the existing nameplates will similarly switch over. According to our sales forecasts, Renault is likely to bring out its QM5 SUV, based on CMF-C architecture, in India this year.
Renault's immediate focus in India will be on bringing out additional variants of the Kwid, which has exceeded the automaker's expectations. The small car has accumulated more than 100,000 orders since its launch six months ago. In the coming months, Renault plans to equip the SUV-shaped hatchback with a more powerful 1.0-litre engine and automated manual transmission (AMT). Both versions were showcased earlier this year at the New Delhi Auto Expo.
Renault's strong product pipeline hints at its emergence as a formidable threat to Maruti Suzuki and Hyundai. However, the automaker is not without its own weaknesses, and a limited retail presence is one of them. With the new products in the A and B segments, Renault plans to compete directly with Maruti Suzuki and Hyundai, but it has only around 200 sales outlets in India. This contrasts sharply with nearly 1,950 outlets for Maruti Suzuki and nearly 400 outlets for Hyundai. Clearly, Renault needs to expand its footprint in tandem with bringing more products to India.
About this article
The above article is from IHS Automotive Same-Day Analysis of automotive news, events and trends, and is a deliverable of the World Markets Automotive Service. The service averages thirty stories per day and also provides competitor and country intelligence. Get a free trial.