Renault-Nissan Alliance CEO and Chairman Carlos Ghosn,
on Tuesday, took the wraps off the alliance’s latest shot at making a
dent in the Indian market — the CMF (Common Module Family) -A ‘platform’
that will cater to the demands of the ‘rising class’ of car buyers.
The
Franco-Japanese alliance also intends to double its investment in India
to nearly $5 billion over the next few years, and is targeting a 15 per
cent market share, for both the Renault-Nissan and Datsun brands over
the next few years.
“There is no way anybody in the
car industry can be bearish about India. We are investing in products
here, we will expand our capacity, and are aiming for a 5 per cent
market share by the end of this year,” Mr. Ghosn said, while addressing
reporters here at a media roundtable.
To elaborate
his point further, he said that at 15 cars per 1,000 people India’s car
ownership was far lower than other countries such as China (60 cars),
Brazil (200) and the U.S (800).
“Considering the
investments that are being made by the government on infrastructure, and
a booming private sector, there is no way any one in the car industry
can be pessimistic about this market,” Mr. Ghosn added.
“We
see India easily being in the top five markets for Renault and in the
top ten markets for Nissan in future. The new platform was Indian
designed, Indian engineered and made for Indians,” he added. The new
investment will also see an entry into the ultra low cost car segment,
with the help of the CMF-A which will cover the most affordable category
of cars in the Common Module Family.
“This platform
has been built ground up jointly by Renault and Nissan and it will be
state-of-the-art and most innovative,” he said. The platform would be
used across the three brands Renault, Nissan and Datsun, he added.
The CMF-A, for instance, offers a high degree of flexibility while
significant body style and power train variations can be matched to
specific Indian needs and preferences. India will be a home to the CMF-A
platform, as development work on the platform began in alliance’s
engineering facility near here.
According to a
company release, production of vehicles within the CMF-A scope will
begin after two years in Chennai, and the first car will hit the market
by 2015.
“We are breaking new ground with CMF-A to
meet and exceed the high standards of consumers in the world’s fastest
growing economies, particularly people buying a new car for the first
time,” Mr. Ghosn said, while refusing to divulge further details on
pricing details or product volumes.
About the ultra low cost car, the Renault-Nissan chief pointed out that Ratan Tata had the right idea.
“Our
frugal car will be at entry-level prices, if you understand what I
mean. Our intention is to come out with a car that will be totally
modern, Indian engineered and not have outdated technology,” he added.
“But
let’s make it clear, we don’t want to compare ourselves to the Tata
Nano, or benchmark against it,” he added. The current slowdown in the
Indian market, Mr. Ghosn said, should not be looked as an obstacle to
future investment or strategies.
“It is really a
question of adapting to temporary slowdowns. Yes, the situation here is a
little bad. In Russia and Brazil, things aren’t looking up, but if you
look at the fundamentals of all countries, the trend is upward,” he
said.
“By the end of this year we will sell, hopefully, 150,000 cars here in India,” he said.
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