Buoyed by the success of its compact SUV, the Duster, Renault India aims to double total sales this year.
In 2012 (calendar year), Renault sold 35,000 units; of which 23,700 units came from the Duster (a huge jump from 1,500 units the year before).
This year, the car-maker aims to touch at least 70,000 units, with 70 per cent of the sales coming from Duster, says Marc Nassif, Managing Director. Renault launched the SUV in July last year.
Its growth is on a small base, but the “cake is also getting smaller,” says Nassif referring to the overall car market which shrunk last year.
“This year is all about consolidating our growth. It will be foolish to launch any more new cars this year.”
In the next couple of years, Renault believes India will give it “critical mass” on a global scale.
Although numbers seem to suggest so, Nassif insists it has not been a complete Duster-only show last year.
“Scala (a sedan) is slowly ramping up. Duster has impacted sales and visibility of other brands (Fluence and Koleos) as well. But a complete revival of the sedan market will take time and we have to accept that.”
Duster is also making news across the seas.
Renault has exported 4,810 units of Duster, branded Dacia Duster, to the UK and Ireland since December. Dacia is a Romanian brand which Renault acquired in 1999. More right-hand drive markets are in the pipeline.
The French car company has its task cut out to translate the brand salience the Duster has now to the overall brand. Renault is doing that “silently” by ramping up its sales and service network, says Nassif.
In 2011, it had a dealer network of 40 showrooms. Last year, it grew to 100. This year, Renault is looking at a 30 per cent growth in touch points, including tier II and III towns.
Renault is not getting carried away by the Duster. It is keenly aware that competition is heating up in the compact SUV market, with Ford to roll out its EcoSport soon. “We now have to put our heads in ice-cubes to cool it,” says Nassif, with a broad grin.