Renault Lodgy will redefine MPV segment in India: Sumit Sawhney

Car maker Renault has aggressive plans backed by a firm belief that it will achieve 5 percent market share in India by 2016. The company is leveraging its assets and has a clear strategy to achieve its growth targets in India.

With the aim of further consolidating its brand in the MPV segment, Renault recently launched the Lodgy MPV in India. At an introductory price of Rs 8.19 lakh (ex-showroom, Delhi), the Lodgy promises to serve customers looking to have an experience of both an SUV and a Sedan.

In an exclusive interview with Reema Sharma of Zee Media Corp, Sumit Sawhney, Country CEO and Managing Director- Renault India Operations, shares his views on expectations from Lodgy, the company's strategy and growth targets.

Excerpts...

Q. What are your expectations from the Renault Lodgy?

The MPV market has a lot of opportunities. With the government keen to invest in infrastructure - wider roads and better expressways – going forward there will be significantly more inter-city travel than we see today. In addition, the government’s 100 smart cities plan will generate investments and down the line, followed by a lot of movement by road between cities. That is a very positive sign for MPVs which can accommodate people safely and comfortably.

The ‘work hard, party harder’ mantra is fast catching up in India and along with being an able car for daily commuting and city driving, the Lodgy will be a perfect partner for safe and comfortable long drives and weekend getaways which are becoming an increasing trend in India.  Over the next 2-3 years, we will see MPVs emerge as a very strong segment in India and we are confident that the Renault Lodgy will play an important role on the growth of the segment.

Q. Who will be Lodgy's potential competitors?

Renault has the distinction of inventing the MPV segment over three decades back, and the Renault Lodgy that we recently launched in India showcases our prowess in the segment.  We are confident that the Lodgy will break new grounds in performance, fuel efficiency, comfort and other features, combining the best offerings of a sedan, and the space and convenience of a MPV.

It comes equipped with features and services that are people centric, addressing real customer needs, and will cater to a diverse set of customers. We have priced it competitively and we are confident that Lodgy will create a new segment in the Indian automotive industry, as we have successfully done with Duster recently.

Q. Renault Duster has been a blockbuster hit and has also aided in the company's total sales. Can Lodgy repeat this success?

2015 is the year for Renault and it will play a pivotal role in realising our goal of achieving 5 percent market share in India by 2016. We are leveraging our assets and have a clear strategy to achieve our growth targets in India.

With Lodgy, we are entering a very strong and emerging segment. Lodgy will be another key volume driver, and will supplement our aggressive product-strategy. We are confident to win customers from the existing the MPV market, and also appeal to sedan and premium hatch customers. Lodgy will set the base for the next phase of our growth in India.

Q. There are entry level vehicles in the MPV section at Rs 6 lakh in the market. Don't you think you have taken a lot of risk in pricing the car?

There are three ingredients in ensuring the success of a car – the right product, at the right cost, launched at the right time. With Lodgy, we have ticked all these boxes with a product that offers an outstanding value proposition. We are confident that the Renault Lodgy will redefine the MPV segment in India.

With the entry level pricing of 8.19 lakh, we offer a host of features starting with our reliable and fuel efficient 1.5 litre dCi (common rail direct injection) engine. We also offer several features including front HVAC with cabin filter, power steering, engine immobilizer, ABS with EBD & Brake Assist, and body colour bumpers.

Q. Are there other cars in the pipeline? What are the company`s plans for the next half of this year?

We are taking major steps to increase our presence in India and are entering the volume and growth segments to strengthen our position in India. Together with Lodgy, we will also be launching a compact hatch this year, which will target the heart of the Indian automotive industry.

Renault has also grown its network presence to more than 157 facilities across the country, to make Renault cars accessible to more customers in India. We will further expand our presence to 205 facilities through the year, which will be one of the fastest ramp ups by an auto manufacturer in India.

Besides this, there are several other business avenues that we are focusing on, including our used car business, Renault Finance and our Accessories offerings, which will help build our brand in India.