The Fluence is a moderately good looking, reasonably competent car. Whether it can help Renault build and strengthen its presence in India remains an open question...
French car manufacturer Renault’s alliance with Mahindra proved rather short-lived, what with the Mahindra-Renault Logan failing to do well in the Indian market. Last year, Renault decided that its aims and objectives for the Indian car market are decidedly different from those of Mahindra’s, which continues to primarily focus on MUVs and for whom sedans/saloons are not a priority.
Having parted ways with Mahindra, Renault is now back with a vengeance. The French company recently launched the Fluence saloon in India, which is priced at Rs 12.99 lakh for the diesel version at Rs 14.40 lakh for the petrol. The Fluence will compete in the entry-level D-segment, going up against cars like the Toyota Corolla, Honda Civic, Skoda Laura, Chevrolet Cruze and Volkswagen Jetta.
The Renault Fluence seems to be well-equipped for battle – the car is reasonably good looking and comes with 1.5-litre, 112bhp (diesel) and 2.0-litre, 135bhp (petrol) engines. Transmission options include a six-speed manual for the diesel and a continuously variable automatic (CVT) unit for the petrol. Both versions come with a host of safety features like anti-lock brakes and airbags, plus bits like a high-end sound system, leather upholstery, separate air-conditioner vents for rear seat passengers and parking sensors etc.
However, while the Fluence seems to be an impressive product, it’s only the beginning as far as Renault’s India offensive is considered. By the end of 2012, the French car company aims to have as many as five models in its India line-up, including the Fluence, the Koleos SUV (which will be assembled at Renault’s plant near Chennai) and three other vehicles, including one SUV and two cars.
‘The Launch of the Fluence in India is the start of a wide-reaching product offensive on one of the markets considered a pillar of Renault’s international development of our ‘2016 - Drive the Change’ plan. With the Chennai plant, along with Renault’s engineering, design and logistics centres, plus a dealer network that will number 100 outlets by the end of 2012, Renault is doing everything to offer Indian customers a range of quality vehicles well matched to local market conditions,’ said Renault India Managing Director, Marc Nassif.
With an annual growth rate of around 20 percent over the last few years, India is one of the fastest growing markets in the world. In fact, the Indian car market, which totalled 1.2 million vehicles in 2005, is expected to hit the three million mark by end-2011 and 3.7 million units by 2015, making it the fourth biggest car market in the world. Also, around 60 percent of Indian car buyers are first-time buyers and 57 percent are aged under 35, which makes the market very attractive for brands like Renault, which are still relatively new to India, since younger buyers are more likely to adopt car brands that are relatively new and unknown to them.
‘Indians love technology, ranging from the internet and latest-generation mobile phones to high-tech products of all kinds. Sure, people want affordable cars, but they also want them to bristle with new technologies. So Renault is entering the Indian market from the top end to establish a strong brand image driven by the technological virtues of its best products,’ says Renan Livet, Renault’s marketing manager for the Asia-Africa region.
Renault also recognises the fact that because of the stiff duties levied on imported cars in India, only cars assembled locally can expect to achieve competitive performance and take significant market share. Hence, the company’s manufacturing facility near Chennai, which was built by the Renault-Nissan Alliance, which now employs a workforce of around 3,600 workers and which will have a manufacturing capacity of 400,000 vehicles per annum by the year 2015, will be a major driving force for Renault’s operations in India.
