Renault to accelerate manufacturing in India

Renault has adapted its new industrial strategy according to which it will focus on high value-added products’ in Europe. Renault also plans to expand its new car production in the potential markets like Brazil, India, Russia and China.

Renault was criticized in the past by the analyst on staking too much in the European market. However, this time Renault has built its strategy considering that in mind. The company officials revealed that the consolidated sales of the company outside Europe accounts around 37 per cent which is likely to rise to 43 per cent by 2011. The company is looking forward to building a potential market outside Europe in country's like India, Brazil and Russia.

The company's sales in Brazil, Russia, India and China have jumped four fold in the last decade and now account for one-third of car sales worldwide. Non-European new car sales are expected to expand by 50 per cent between 2010 and 2016.

Renault had plans to set up its own distribution network in India in order to support the new products which will be launched in the second half of the year. Over the next 20 months the company aims to launch new cars and set up Renault's brand dealership in India.

The company had frozen the investments in the Chennai plant but now it has again started investing in India. The company plans to set up around 10-15 dealerships by the end of 2011 where it plans to sell the Fluence and Koleos.

Renault is also developing a B-segment car in alliance with Nissan which is likely to be manufactured at Renault’s existing plant at Chennai. This new venture will share the same V- platform which Nissan Micra is based on.

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