Renault's new compact car, Pulse, which was unveiled on Sunday, is a key chapter of a global strategy where countries like India will take centre stage in the coming years.
The Pulse is one of three new products planned here in 2012 (the others being a sedan and the Duster SUV). The company has already launched the Fluence sedan and Koleos SUV and if the script goes according to plan, India will be its 11th largest market by end-2013.
Betting big
At present, the country does not figure even in the top 15 but it is crystal clear that Renault is betting big on emerging markets to drive its growth this decade. This was evident in the third quarter results declared last week, which saw Russia leapfrog to the fourth slot (from 10th position in Q3 of 2010) behind France, Brazil and Germany.
The UK, which was in the sixth place last year, does not figure in the French automaker's top 10 countries this time around. On the other hand, Iran qualifies (it was No.13 in 2010) and is now ahead of Italy and Spain, which are at the bottom of the list. Observers believe the automaker's share in Europe will gradually reduce in the near future with the exceptions being Germany and France.
It is only natural, therefore, for Renault to focus on India, which will have a big role to play along with Russia and Brazil in the new global script. As for China, present indications are that Japanese ally, Nissan, will play a pivotal role in taking the story forward.
The Logan lesson
Clearly, Renault is keen to move on in India after the Logan debacle when nothing worked according to plan. The company, however, believes it was a useful learning experience especially from the viewpoint of “thinking local for the local market”.
It has already made known that it is working on a sub Rs-3 lakh compact, which will compete with the well-established Maruti Alto and the recently launched Hyundai Eon. This car is expected to debut only post-2013 and will give India a stronger standing in the Renault global map.
Over the next 3-4 months, the company's role in the ULC (ultra low-cost) car project with Bajaj Auto will also become a lot clearer. The vehicle is expected to be showcased at the Delhi Auto Expo in January and Renault will then take a call on marketing it here and abroad.