Renault will see at least three-digit growth in 2016

February 06, 2016 02:21 am | Updated 02:21 am IST

Sumit Sawhney

Sumit Sawhney

Sumit Sawhney , Managing Director and Country CEO of Renault India, the domestic arm of the French auto maker, says the company is on track to achieve its goal of 5 per cent market share by 2017 and in fact expects triple digit growth in 2016.

On the sidelines of the Delhi Auto Expo, he speaks with The Hindu on outlook for the industry, growth expectations and need for a stable regulatory environment.

What is your outlook for the Indian auto market?

The Indian automotive market is linked to the economic situation in the country. So at least in 2015 (calendar year), the sector has seen a growth of about 8.5 per cent. This is the first positive sign as in the previous year we saw a flat market and de-growth.

Going forward all the economic developments we are seeing will definitely boost the market further.

To move to the next level, we need strong infrastructure development. The government has committed to build 30 km of road a day. This will help. On the regulatory side, some changes like phasing out old cars will help create more space and also bring in newer technologies that are more fuel efficient and environment friendly.

With all these regulatory changes and infrastructure, there is clearly a good opportunity for the sector. I feel, for this year we will definitely see growth trends.

Do you expect it to be more than 8.5 per cent?

It would be around 8 per cent. It won’t be double digit or high double digit. But we are on the right track at this stage.

As an automaker are you comfortable with the current policy scenario?

Most important thing that I see as an automaker is consistency of policy and speed of policy implementation. I think what we are seeing, whether it is moving from Euro 4 to Euro 6 or for that matter the recent ban of diesel engine…we need to have a better understanding. I stand by my earlier statement that we need to get all the facts right. Cars are not the ones that are really creating this pollution which is very clear with all the studies.

It is important that we have a full game plan rather that taking sporadic decisions because we as manufacturers also make huge investments in technology and if we know what is the roadmap, if would be better for us instead of knee-jerk decisions coming in between and stalling the whole process.

Talking about roadmaps, what is the way ahead for Renault?

Our roadmap is very clear. Renault wants to achieve over 5 per cent market share by 2017. That is our clear medium term goal and with the launch of Kwid we are already touching 4 per cent market share. We have already over 100,000 bookings for Kwid in about four months and I am confident this will only go up in the coming months.

What are your export plans from here?

Currently, we are doing small numbers (of exports). But going forward, with Kwid we have plans to start exports of our cars to SAARC countries which includes Nepal, Bangladesh, Bhutan Sri Lanka. We are also looking at supplying parts to Brazil to make Kwid there. We are also working out a plan to export to Africa.

We are doing small numbers of Duster also. But largely, we will go aggressively on our export plans with Kwid.

What growth do you expect for Renault in India in 2016?

In 2015, Indian automotive industry grew at 8.5 per cent. Renault’s growth was 20 per cent. We sold 53,847 units during the year against 44,849 units in 2014. This year i.e 2016, all I can say is that Renault will see at least three-digit growth over 2015.

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