Renault and Nissan aim for 10% sales share in India in 2016
Formed in 1999, the Renault-Nisan Alliance celebrated its 14th anniversary in March 2013. The alliance showcases aspects and factors of these two groups which are then reflected in products they create, providing them with crucial advantages in market scenarios. This alliance has enabled car maker Renault to rise up alongside auto manufacturers across the world.
Though current market situations weren’t most favourable, it did well globally to record sales figure of 8.1 million vehicles or 8,097,197 units to be exact. Breakup of sales figure shows that Nissan sold 4,940,133 units, Renault sold 2,550,286 units while AVTOVAZ 606,778 units respectively. These figures account for over 10% of new cars in the world today and demarcate Renault as the fourth ranking auto brand in the world. The Alliance has made use of superior strategy and skill to use market conditions to their advantage. Renault has also tied up with AVTOVAZ in Russia and Dongfeng in China to provide better service to customers in those regions. Back in 1999, Brazil, Russia, India and China (BRIC countries) accounted for only 8% of the global car market. In 2012, those numbers increased to 36% of global vehicle sales. While, most automakers in India have been reporting a sales decline in recent months, Renault India certainly isn’t plagued by such a predicament as of now.
India is the base of action for Renault with the Chennai plant being able to manufacture products to help tract customers in the auto market. Renault and Nissan are working towards a 10% market share in the Indian auto industry by 2016, while in Russia, Renault and Nissan along with AVTOVAZ are aiming for a 40% share in the industry with Renault looking to settle for an 8% market share. The alliance has enabled these brands to save on costs that are incurred due to manufacturing of different platforms, gearboxes and engines as due to usage of shared platforms and synergies to help design/procure suitable engines Renault has benefited greatly.
The Oragadam Chennai plant in India began operations back in March 201. In 3 years, this one of a kind alliance-dedicated plant will enable Renault to produce locally, and as a result, penetrate the Indian auto market. Renault India has to date launched 5 vehicles in 17 months in the following order Fluence and Koleos in 2011, Pulse, Duster and Scala in 2012. Renault and Nissan look forward at 10% market share in India in 2016, with Renault looking at 5% hold.
For march 2013, Renault India sold 8,232 vehicles, which equates to more than an eight-fold jump in sales. Their success can be attributed to the Duster SUV that had not been launched last year this time. In comparison, they sold 1,005 vehicles in March 2012. The breakup in terms of sales volume are as follows. 6,313 units of Renault Duster SUV, 1,026 units of Scala sedan, 541 units of the Pulse hatchback, 337 units of the Fluence sedan, and 15 units of the Koleos SUV were sold.
For the FY 12-13, Nissan India reported 11% sales growth. 36,975 vehicles were sold through the 1 year period as compared to 33,270 sold for the corresponding 12 months, the previous year. The mid-size Sunny sedan aws the largest contributor to slaes volumes with 24,011 units sold. The premium compact Micra sold 11,454 units. The Evalia Multi Utility Vehicle (MUV) was launched in October 2012, and has accounted for sales of 1,396 sales. Other vehicles that Nissan India sells are Teana, X-Trail SUV and 370z sports car.
Kenichiro Yomura, Managing Director & CEO, Nissan Motor India Pvt. Ltd. said, “Given the operating environment, this is a good performance.” He added, “We have maintained our sales momentum in India and continue to scale up our operations in line with our long term strategic goals for the market. We have also significantly expanded our dealer network to 95 over the last twelve months, underlining our future, long-term commitment to India making the Nissan brand accessible to more and more people.”
Nitish Tipnis, Director – Sales & Marketing, Hover Automotive India (the National Sales Company for Nissan India) said, “We have continued to grow in spite of a market slowdown only because of our strong customer focus, which has allowed us to keep our sales targets consistent. We will continue to bring our customers even more excitement in the marketplace throughout the next fiscal year with the introduction of a new and exciting product range to meet customer needs. This will be reinforced with our philosophy of providing unmatched customer service.”