Renault India stated that it is planning to launch a sub-Rs. 4 lakh car in India in 2015, that will catapult its market share from the current 2.6 percent to 5 percent over the next 3-4 years. India is largely a small car market and every manufacturer wants its presence felt in this segment. The small car segment accounts for around 40 percent of the Indian market share and introducing a car in this segment will help the French manufacturer sell volumes. Renault’s alliance partner Nissan has brought in the Datsun GO in the entry-level segment.
The upcoming small car will not be a cross-badged product from Nissan but rather a model developed by Renault itself. The company is also planning to enter the MPV segment with the Renault Lodgy next year. While details are scarce about the upcoming small car, speculations were rife that Renault is working on a small car taking cues from the Datsun Redi-Go concept showcased at the 2014 Auto Expo. The new small car will be positioned below the Pulse in the company’s lineup.
Renault is also planning to launch its financing arm RCI Banque that will support both partners Renault and Nissan in India. RCI Banque will provide credit related support to dealers and customers. The company sold 64,000 units in 2013 and the new small car will help double up the number. Renault currently sells the Pulse, Scala, Duster, Fluence and the Koleos in the country, all of which are priced above the Rs. 4 lakh mark. The company recently launched the Koleos SUV facelift at the 2014 Auto Expo and the updated Fluence sedan will be launched on 19th March, next week.