Renault turns to India for relief from Europe slump
Automaker aims to boost market share to 5%
Renault's product offensive in India has grown to five cars in the last 18 months as the automaker looks for ways to compensate for falling sales in Europe.
The launch of the Scala minicar last month is part of Renault's goal to boost its market share in Asia's third-largest economy to 5 percent by 2020 from next to nothing. After eight months, Renault had sold 10,259 vehicles in India compared with 673 during the same period in 2011, according to JATO Dynamics. Renault aims to boost its annual sales in India to 100,000 by 2014.
Reaching that target might be tough. Earlier this month the Society of Indian Automobile Manufacturers cut its car sales growth forecast for the year to as low as 1 percent. That's down from July forecast of about 9 percent and an estimate of 10 percent to 12 percent growth given in April.
While India's car-sales growth appears ready for a slowdown, the country is expected to see strong long-term gains.
"Renault really needs to keep investing in India where it is more fruitful and cost effective" to invest than Europe, said IHS Automotive analyst Ian Fletcher.
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