Latest Car News in India

Friday, February 03, 2012

By Manoj Kumawat

Renault refrains entering the sub-1.5 litre segment

Renault India that has recently launched its all diesel small car Renault Pulse in January has reportedly said that it has no plans to enter the under 1.5L segment. However, Renault will be launching the Renault Pulse petrol which is expected to be of 1.2L. The Renault Pulse petrol will be launched only if the Indian government levies higher tax on diesel cars in India. Notably, Renault has launched three cars including Renault Fluence sedan, Renault Koleos SUV and small car Renault Pulse. The French car biggie will be launching two more cars- Renault Duster SUV and one more Renault car in India this year.

Renault Pulse Pictures

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Since long there has been reports regarding the Renault-Bajaj-Nissan alliance coming up with a ULC (ultra low-cost car) but that has been restricted to reports only and nothing fruitful could come out of the alliance. Now that Renault has shown its unwillingness in entering the under 1.5L segment, it can be said that there will be hardly any outcome from such alliance.

Renault Pulse Pictures

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Primary factors that could be behind Renault resistance in entering the under 1.5 L segment in India is the limited number of its dealerships in India. However, the French car maker proposes to increase the dealerships to 100 this year, still adding more hatchbacks to the fleet will need more dealerships. Besides, the small car market is already stiff with over 19 offering in the segment already and adding one or two more would be unwise, said sources. However, as per a statement given by Renault India Vice-President for Sales and Marketing, Mr Len Curran Renault has plenty of experience in selling hatchbacks. Further Renault reportedly believes that Indian car buyers are upgrading to highly powered cars and two pots and three pots seems to be insufficient.

Renault Pulse Pictures

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Notably, the Indian government is thinking of increasing the tax on cars and following which the diesel car prices in India will further shoot up if the proposal takes shape during the budget. Thus, due to an increase in tax Renault Pulse diesel as well as Renault Fluence diesel price will increase and it is expected that the demand for petrol cars will revive. Sensing this Renault will be launching Renault Pulse petrol in India.

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