With orders for the Renault Kwid surging past 70,000 units, the French automaker is finding it very challenging to match its production pace with demand. The company managed to dispatch over 7,800 units last month but at this rate, it will take several months before the demand-supply gap is plugged.
Rushlane has learnt that dealerships in certain tier-1 cities have already accumulated enough orders to have a waiting period as long as 10 months. It’s reported that some customers who have pre-ordered their vehicle before the launch are still waiting. To make the matters worse, the disastrous flooding in Chennai has led to temporary production halt at Renault-Nissan Alliance’s plant at Oragadam and a significant number of finished cars are stranded without transport due to the same reason.
The situation in Chennai is likely to extend the Renault Kwid waiting period further by a week or two. Renault India has earlier said that it is in the process of increasing the production capacity of the popular budget hatchback. We think that the car maker should at least double Kwid’s production to around 15,000-20,000 units per month for the next few months to avoid losing several thousand orders.
Also read – Renault Kwid review
It’s to be noted that Renault-Nissan Alliance plant in India has surplus installed capacity to handle the production ramp up but the lack of pace appears to be the result of production constraints at the vendor end.