When asked by Economic Times how the success of Renault Kwid impact Maruti Suzuki India Ltd., R C Bhargava, Chairman, MSIL, stated that the jury is still out and the actual impact would be determined after two years when issues around service kick in.
The top official sounds confident about maintaining the leadership in small car segment despite the Kwid’s exceptional start. Maruti’s single largest strength is the wide reach of its sales and service network – something that Renault India lacks at this point.
Mr. Bhargava’s statement on issues around service for Kwid and his time frame of 2 years suggest that he thinks reliability and after sales service would be huge challenges for Renault India. The Renault Kwid has been developed primarily in India with a local content of 98% (highest by any car in India). The long term success of the Kwid would stand testament to India’s product development capability.
The SUV-ish small car is powered by a 800-cc three-cylinder petrol engine which is mated to a 5-speed manual transmission to produce 54 PS. At the Auto Expo 2016 in February, a more powerful 1.0-litre variant with AMT is expected to be on display. The range-topping Renault Kwid variant is also expected to offer ABS and airbags.