Renault to invest Rs 4500cr in Chennai facility before 2015
Renault has big plans for India. The carmaker is looking to launch a hatchback using the Nissan platform and take on market leader Maruti. Renault also is in no mood to allow former partner - M&M to exploit the Logan platform. Remember, Renault and M&M have ended their India alliance.
In an interview with CNBC-TV18’s Shereen Bhan, Katsumi Nakamura, Head of Asia & Africa and Marc Nassif, Country MD, Renault India, speak about the company’s plans going forward.
Nassif said Renault's commitment is to invest Rs 4,500 crore, about 700 million euros before early 2015 in Chennai facility.
Below is the transcript of the interview. Also watch the accompanying video.
Q: You have talked about being able to acquire 2.5% market share in India by 2013. You are looking launching about five products in the next two years. Can now give us a sense of the kind of money that you have invested in India so far and the kind of investments that you will now be making because you have got a pretty aggressive product pipeline?
Nassif: The investment so far, the most visible one we have, is in Chennai facility which is an alliance investment. Our commitment is to invest Rs 4,500 crore, about 700 million euros before early 2015. That includes state of the art facility, which has a capacity today in terms of vehicles of 2 lakh, which we have decided to join it to extent. We will have 4 lakh capacity per annum installed by mid 2012.
Q: You intend to launch two SUVs, in a sense you are planning to take on your erstwhile partner Mahindra and Mahindra. I want to know if you are going to be hitting M&M where it hurts, which is in the Scorpio-Xylo price bracket. More importantly, where does your relationship with M&M lie, as far as the Logan, which is now called the Verito, is concerned? M&M would like you to extend the Logan platform to include hatchbacks as well. Is that something Renault India is agreeable to? Will you go beyond the current Logan variant in your relationship with Mahindra and Mahindra for the future?
Nassif: We have a clear and a friendly relationship with our friends from Mahindra. We have decided to go together that Logan should continue in the market. By the way Logan is highly appreciated product. The only thing that was missing is local masala which was attractive design and attractive look. The car has what Renault has built in terms of DNA—quality, robustness, sturdiness, reliability, comfort, fuel efficiency, roominess, ride and handling. The only thing that was missing was attractiveness. And that we got the message.
The cars, which we are bringing now, are quite appealing to the customer. Its atleast the feedback we are receiving today. The deal, the agreement, the discussion we have had with Mahindra so far allows them to do a sedan on that platform which we believe they are doing well. They have just re-launched the car under their brand and with a new name. Now it belongs to them to develop it and to do whatever they feel as long as they keep it as a sedan.
Q: A quick question to you and that is on the ultra low cost car that you are developing with Bajaj. What we know, which is public information at this point in time, is that Bajaj has developed a prototype. That this prototype is a four wheeler and it is able to do about 30 kmpl. Does Renault support this prototype? Have you seen this, do you support the concept and the idea?
Nakamura: I did not see the prototype. Renault is interested in such market and such inexpensive car offer to the customers. We are waiting for the detailed information on that prototype. But we have not seen it.
Q: You are going ahead with plans of launching a hatchback which will be on the Nisan platform that you and Nissan will jointly launch sometime next year to take on market leader Maruti Suzuki. But there has also been a lot of speculation that you are working on your own alternative of ultra-low-cost car, apart from the one that Bajaj is working on, is that accurate?
Nakamura: No, at this point we are just seeing the market.
Renault to invest Rs 4500cr in Chennai facility before 2015 - CNBC-TV18 -