One more car manufacturer is likely to jump on the bandwagon to set up their new manufacturing unit in the industry-friendly state of Gujarat. Looks like, the French car manufacturer has some concrete growth plans in store for India. Now is the time to depend largely on exports as sales is not the favourable point for any car manufacturer of late. And the new Renault plant in Vadodara, Gujarat will just fill the bill. A huge capital of 1.5 billion Euros is being invested to drive their small car project on the upcoming plant. However, one should take it for granted as the discussions with the Gujarat government are still in the pipe-line.
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If everything falls according to the Renault’s plans, the entire set up will occupy a large area of 100 acres. As many as 400,000 units are likely to be rolled out per annum to meet the export needs of Renault. If possible, the auto major might think of a vendor division as well to have localised supply of components to produce cost effective models. But, consumers in India will be lucky if Renault India re-thinks over its pricing strategy. If the vendor setup goes hand in hand with the manufacturing unit, a revised pricing on Renault models can be expected.
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However, Renault India might employ a better strategy to keep the profit margin quite to themselves without passing on to the consumers. Well, it is the Renault to decide at the end of the day.Renault must be on cloud nine with all its plans working in favour of the auto major. A couple of years ago the story was not quite the same. Renault had given up on their partnership with Mahindra when their stint did not go well with Mahindra Renault Logan. But, without sitting back and relax, the auto major had made the debut this year as a single entity with Renault Fluence sedan. Since then there has been no looking back. After Renault Koleos launch, the auto major is clearly set to launch the Renault Pulse hatchback at the 2012 Auto Expo.
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