French car maker Renault to conquer India with new budget car
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The Kwid is the new Renault budget car, launched on Wednesday, is designed to conquer India. Its price is 300,000 rupees or 4,000 euros.
“The vehicle is a global car. If we make it in India, we will surely make it in all the world,” said Renault chief executive Carlos Ghosn, although it is not intended for sale in Europe.
Foreign car makers have flocked to India in the last two decades, seeking to target a vast market in the country of 1.25 billion people and leverage its low workforce costs.
It's “a car for conquest” said Ghosn “India is not an easy market but we decided to play a role on this market,” and India’s car market grew almost 5 per cent last year with 2.6 million cars sold.
Renault accounts for 1.5 per cent of sales in India and wants to increase to 5 per cent with the Kwid.
Although the competition is strong in the small car sector, product differentiation seems to be the key here, as Renault faces competition from the Indian-Japanese manufacturer Suzuki-Maruti which holds 45 per cent of the market, and from South Korea’s Hyundai.
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