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Renault to take Dealership Tally to 270 to boost sales

Monday, Aug 22, 2016,12:52 IST By metrovaartha A A A

Mumbai | Renault has been on a roll, after the launch of the Kwid, which led to its consolidation in the high volume space. So, in order to provide better accessibility to their products to buyers, Renault India will be adding another 30 dealerships in December.

With these 30 dealerships, the total number of Renault dealerships will be 270, from the current tally of 240. The move is precisely to make the Kwid even more available and to help meet its own demand, as the French carmaker aims at a 5 percent share this year, against their 4.5 percent share till June. It remained only 1.5 percent of the total market before the Kwid was launched.

“I don’t see any chance of the entry-level car segment saturating anytime soon. With 24 per cent of the total market, this still is the largest market and in this segment we are among the top three players for the past seven months, consistently grossing up over 7,000 units every month. For the past two months, we are grossing up 9,000 each.”

“And to our pleasant surprise a lot of demand is coming from tier III & IV markets. To meet this, we’ve reworked our market strategy to open 30 more dealerships by December, which will take our total network to 270 this year (up from 240 planned earlier). In fact, as per our 2014 plan, we were to have only 280 by December 2017,” Renault India Chief Executive Sumit Sawhney told reporters in Mumbai.

Eyeing tier III and tier IV rural markets, the Chief Executive said that the 65 new dealerships will be set up in small towns. Currently, Renault India has 220 dealerships all over India, while it was 205 within the end of 2015. Renault reports a whopping 610 percent growth in sales with 11,968 unit sales in July, compared to 1,686 units last year and majority of the sales has come from the Kwid.

While Renault has built sufficiently on the customer and dealership front, what makes Renault optimistic is the sales-conducive monsoon, the oncoming festive season and the associated mood. Financial and economic factors as corporate business performances and the 7th Pay Commission are also likely to foster sales among corporate and government employees.

The Kwid currently has a waiting period of three months, while about 7,000 units are being sold each month. Renault has also been planning to bring down the waiting period to around one month. The French company has also been currently commanding a spot in the top three positions of the entry-level, mid-size segment and MPV space with the Kwid, Duster and Lodgy, respectively.

The manufacturer has also been selling 7,000 units of the Kwid for the past seven months with 2,000 units of the Duster consistently for the past two and a half years and over 600 Lodgy MPVs. The new dealerships are expected to improve upon these numbers.