Renault to enter used car biz
Auto major set to launch 2 models; targets market share of 5%
By : munish shekhavat
Update: 2014-10-04 04:31 GMT
Paris:French auto major Renault SA plans to enter new verticals, including used car business in India in 2015, besides launching two new models, to make its presence felt in the market which it sees as “the biggest challenge”.
The company, which is targeting a market share of over 5 per cent in India, is also leveraging on its 4,500-strong R&D Centre in Chennai to come up with products which are “right for the country”.
“India is the biggest challenge for Renault in the next two years... We have high ambitions from the Indian market. It is very important for us,” Renault chairman of AMI (Africa, West Asia and India) region Bernard Cambier said on the sidelines of Paris Motor Show.
Spelling out the company’s new business plans he said: “We have plans to develop some new services. I have ambition with Sumit Sawhney (Renault India country CEO and MD) to develop the used car business and lot of things like that.”
Mr Sawhney said the entry into used car business would help the company in overall brand building. “When a customer is coming today to buy a Renault car he already owns a car, so he is looking forward to an exchange platform where he can get right value for his existing car,” Mr Sawhney said. He further said:
“Also if a customer wants to buy a Renault car we can always give him the option to liquidate his existing Renault car to buy a new one. So used car business is important from customer point of view and for dealers it gives them turnover.”
Commenting on the preparations for the launch of a multi-purpose vehicle (MPV) and sub Rs 4 lakh car in the Indian market, Mr Sawhney said the company is working to develop “right products at right price” as it wants to have a strong entry in the two volume segments.