Renault-Nissan on a small car project for India to rival Alto, Eon

Its well-known that Renault and Nissan have been contemplating to develop synergies together for a small car project in India. Small cars have always been on high demand in the country . A low-budget car with a good fuel economy is an ideal car for the domestic environment. The perfect example of such a car that stands up to the Indian cunsumers' demand is Maruti Alto and now we have another champion in the segment – Hyundai Eon. While small car segment is the key market to garner growth, launching an ideal car in the segment is not a plaything to be handled carelessly.

Gerard Detourbet is the person encumbered with the serious responsibility to identify the feasibility of launching a right car to stand out in the segment fraught with inevitable competition. A team of experts under the supervision of Detourbet are expected to focus on studying the market conditions to evolve with a small car to cater to the needs of the Indian customers. The development of the proposed small car is likely to take place at their Oragadam plant in Chennai. The small car market is large enough with 40-50% market share in the entire car industry. Despite the economic growth in India and with larger section of people moving towards premium cars, the hatchback segment is never likely to loose its evergreen demand.

A market study reveals that hatchbacks will continue to occupy one-third of the industry. Now, this is the segment which Nissan and Renault together have set their sights on. There are numerous cars in the segment, with Maruti Swift for example. Maruti Swift has continued to be the best-selling hatchback ever since its launch. Fuel economy, the classy exteriors have always been the selling factor for the car. The diesel engine of the car offers an additional option for those who are looking for low running costs. Feasibility conditions apart, improving the dealer network in the country is another essential point to work upon. It becomes imperative for both Renault and Nissan to enhance their sales outlets for their recent debut should not adversely affect their growth in the country.

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