The French car maker, Renault is being very cautious with its new entry level car project for the Indian subcontinent and according to the Chief Operating Officer Mr. Carlos Tavares at this point the project is in the nascent stage of preliminary study. He also mentioned that if everything goes as planned then India would be the first choice as a market for starting the project. The expected price of Renault entry level car is around Rs. 3 lakh and this competitive pricing will be a stimulant in the growth of Renault India as Indians are most concerned about the pricing.
This feasibility study is being orchestrated by Mr. Gerard Detourbet who has been handling the strategy for entry-level cars with Renault for quite some time now. The products that fall under this strategy are Logan, Duster and Sandero and according to this French auto giant these cars are designed very nicely without any useless content and also mirror the conditions of their operational markets. Mr. Tavares also stated that the mastermind behind the study of the entry-level car strategy Gerard Detourbet is pretty capable of driving a kind of study that could help manufacture cars at an even more competitive price.
Mr. Tavares added that Renault is by far the most successful car maker when it comes to designing the cost and manufacturing of the entry level cars in the countries which prefer low costs. He appreciated Mr. Detourbet for his ability of making cost-effective products that can be very well linked to the mentality of Indians when it comes to avoiding waste. The prudence of avoiding waste and the abilities of an entry level car when combined work really well for the car market of India.
Renault’s India engineering centre of Chennai is going to play a major role in the context of frugality of the Renault entry level cars. In the words of Mr. Tavares, the people at the facility can be the perfect judge of the needs and would be able to deliver exactly the same thing, not a bit more not a bit less. The company believes that the best thing to do at present is to combine the talent and project management skills of Gerard Detourbet and frugality of the engineers of India. The company understand that the achievement of this objective would not be a piece of cake but once the things get settled as planned then the cars would be ready to enter other significant car markets like South Africa, Russia, Brazil and Indonesia.
Mr. Tavares wishes to take one step at a time and move forward while evaluating the feasibility and the costs levels at every step. He also expressed its excitement about initiating the project in India as India is considered as the most value-oriented market across the globe. The Renault Entry Level Car project also strengthens the company’s thoughts about the entry-level car options which were first turned toward the Ultra Low Cost car that it was developing with Bajaj Auto. Tata Nano served as the source of inspiration for the ULC car which would bear a starting price tag of Rs. 1.5 lakh.
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