Industry News

Renault Targets Rural India and Country Roads to Double Sales

In the midst of the ongoing slowdown of the Automobile Industry, the Indian subsidiary of French Carmaker ‘Renault’ is planning to target the Indian rural markets and country roads. The giant automobile manufacturer is mulling to attract rural India to achieve its midterm target of doubling domestic sales volumes. 

Venkatram Mamillapalle, Managing Director of Renault India Operations, told  media, “The Company will undertake specific marketing strategies for rural markets and expects to get 50% of its total sales volume from there in the coming years.” Presently, rural markets contribute only 10% of the company's total sales. Still, Mamillapalle is confident of doubling sales volumes in the domestic market to 200,000 units annually in the next three years. 

"A couple of new products which will be coming in the future will take us where we want to go volume-wise in the midterm," he added. 

As per the report, the French Automobile giant is targeting sales of up to 20,000 units of its upcoming people mover Triber by the end of 2019, following which it expects average sales of about 7,000 units of the car per month.  

The company is in an investment mode and will refrain from workforce downsizing despite the sales slowdown. The European carmaker will instead leverage the slowdown to re-skill employees, said Mamillapalle while targeting its rival company ‘Nissan’.  
This is in contrast to its partner company Nissan. While this company is giving pink slips to over 12,500 employees all over the world, including 1,710 in India on a global cost-saving exercise, Renault is trying firm its grip in rural India and rural market. 

As per the report, Renault India has sold a little less than 80,000 units in the domestic market in the FY-19. It's market share contracted 75 basis points to 2.35%.  


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Krishi Jagran Marketing
Krishi Jagran