Post was not sent - check your email addresses! A very difficult concept to grasp for the rest of the world is that the car is a very new consumer product in China. My Favourites: 0 My Compare List: 0 Car Alerts Dealer Login Log Me In Register. Thank you very much Harshit these are great insights. Hyundai Eon, Maruti Suzuki's Celerio and Mahindra Scorpio also failed the crash tests. Hi JP – thanks for your note. Renault Kwid's latest version had been given one star for the frontal impact tests. Although now, Hyundai and Kia rule the segment but Renault Duster still enjoyes a huge following in India but Renault messed it up by not bringing the new Duster and instead launching Captur as a more premium offering with European styling and buyers instantly hated it as it did not have the ruggedness and value for money factor of a duster. If the did actually brought Duster to be locally produced in China they could have built the low cost Arkana based on Duster what, about 1 year earlier. The loop is looped. Honda's Mobilio also fared poorly in the crash tests, scoring a zero in terms of adult occupant protection. In fact, local buyers are craving the Duster 4WD so much that it is now available in China as a parallel import (read non-official) from Romania, but 16% dearer: from 149.600 to 169.900 yuan (19.600-22.000€), making it way more expensive than the segment’s all-time local bestseller, the Haval H6. 1. Renault Kwid Service. * This is…. Customers in India are quite concerned about reliability, after sales service, maintenance cost, etc. Hey! I meant VW and skoda are ‘go to’ brands when somebody specifically wants a European car not ‘a car’ in general. Discard the Sandero as hatches aren’t a favourite here, but the Arkana Coupe SUV would fall right into the recent craze Chinese manufacturers have developed for such silhouettes (Geely Xingyang, Dongfeng Glory ix5, Changan CS85 Coupe, Lynk & Co 05, Haval F7x…). As far as lodgy is concerned, it was doomed to fail as people blindly buy Toyota Innova when it comes to MPVs, it has got space, comfort, features and toyota reliability. The Renault offered good head protection to the passenger while it was reported adequate for the driver. Nice article, lots of great elements there, thank you. 2018 Renault Kwid has been in the news this week for failing the safety crash test. That’s what they did with Duster in India and what they are doing with Kwid and Triber now. Vehicles sold under the Dacia brand in Europe but rebadged as Renaults for most of the rest of the world have enabled the brand to reach record market shares in India, Russia, Brazil, Mexico, Argentina and Colombia to name just a few. Very interesting article. In early May, Renault Kwid scored zero in crash tests for its three variants. After the failure of its first Chinese joint venture, Sanjiang-Renault (1993-2003) which produced only 4.906 Trafic vans in a decade, Renault decided to try again in 2013 and reorganised the same joint-venture which became Dongfeng Renault, or DRAC. whereas Renault does not sell in US as it does not have apetite for hatchback and smaller ars and renault does not have huge cars with big V6 or V8. Maruti alto has been Indian bestseller ( except last year ) but you will be hard pressed to see a newly registered Alto in most major cities while smaller towns are filled with them being used as both private cars and even taxi. Arkana was definitely missing and problem was, that the one based on Captur just started its career now in Korea as XM3. Apart from the Duster, which was launched way back in 2012, Renault has failed to produce a hit car in India. I do believe that in a market that bought 45 million SUVs in just 5 years there is room for one of the global best-sellers in the segment, the Duster. The well priced Lodgy MPV has failed to enthuse the buyer and promptly, the French automaker has gone back to its 'one trick pony' status. 2.They prefer hatchbacks ( Kwid, Sandero or Clio) and compact crossover ( like Duster or Captur ) The first generation Koleos, imported into China over the first half of the 2010s, was especially successful in the less developed central and western regions of the country. The ratings for its lowest version took a hit due to issues regarding adult occupant protection. The Duster, Sandero and Logan account for the large majority of Renault sales in these countries, enabling the brand to blossom and avoiding the low-cost stigma thanks to vehicles better furnished than their Dacia counterparts, exclusive sporty versions such as the Mexican Sandero RS or SUV-style variants like the Russian Logan Stepway. Renault instead messed this up in India by going more premium and European with Captur ( the same strategy they tried in China) but they were quick to correct it with price corrections and newer products like Triber which again became a huge hit as it gave buyers value for money ( very important in India ) but not a cheap imagine unlike what Datsun tried and failed. So the customer reach of the Renault Kwid was restricted due to the lesser service stations. Renault India Pvt Ltd is a wholly owned subsidiary of Renault S.A. A Renault engineer friend of mine told me last weekend that the French version of this article was being shared and reshared internally at Renault… I’ll have ‘m book the presidential suite. The avenue I’m suggesting requires a major partner that the Group completely bypassed in this market: Dacia. At the Shanghai Auto Show in 2016 Renault used a different language again, boasting a “sensual and Latin design” that tends to be associated with Italian car brands instead. What was risky for Renault’s brand image was to try and pretend to be a sophisticated brand whereas it really isn’t. George V Paris okee? Again Renault’s positioning in emerging markets hasn’t damaged its image at all, what killed Renault in China was not taking enough risks. With four clones already in the starting blocks, it seems pointless to hope for the survival of the Renault variant, and therefore of the entire Renault brand in China. The result: I saw more Borgward SUVs in the remote town of Bayanhot, Inner Mongolia in 2018 than in Beijing and Shanghai combined (see above). An obvious launch target market would have been women living in the less urbanised regions of China, namely Tier 3 and 4 cities. This means the brand won’t be able to rely on a sustained flow of imports to survive in China. This isn’t a sustainable position, even more so given Dongfeng, partner at 50% in the e-GT joint venture producing that car, is already marketing the same model in China under four different names and two separate brands. This is where our Team or Renault Service Centre technicians step in! Another positive element: the Chinese populations of these regions are even more sensitive to both SUVs and to the lure of European brands. Might even Renault outsells them. The inspection and replacement of the affected accelerator pedals and sensors will be done by the authorized service centres without any cost to the customer. How much has brand visibility impacted their results in this market? And the (expensive) decision of using a local ambassador, the ultra-famous actress Fan Bing Bing, positioned the brand in a completely different universe: this time Asian and feminine. Go to India and Renault will sell the other half of disruption for just under $4,000. New Models Industry News Rumours Speed Tech. With more financial firepower, building an efficient dealer network in a huge nation is easier to accomplish, even if one limits market entry to the urban areas / mega cities. Check your tyres. The decision to no longer invest in this market therefore seems to be the right one, although it is taken at the exact time Renault’s lineup in China was finally expanding. Hi Anthony, I believe the lack of sedans was not a Renault décision but linked to the authorization they received from the Chinese gouvernement: only SUVs and electric vehicles…, COVID-19 Live Dashboard Sales - Forecasts - Our help. I was sceptical about Duster in China but now you have presented facts It might actually work. Road Tests Driving Impressions Buying Used Cars. For example, Hyundai and Kia were able to sidestep the poor reliability shackle that has delayed their development in Europe and the US at the start of the 2000s. This is the classic case of what you rightly pointed out above that people associated renault as a decent brand which is not cheap but offers value for money. French automaker Renault's popular car in India, Renault Kwid failed crash tests that were conducted by NCAP. This version scored a zero for adult occupant protection, although obtained two stars for child occupant protection. This French-Indian disruptor is called the Kwid, and it’s the opposite of the Tesla Model 3 in almost every way. We’ll discuss . Here are the some problems I can surely say about Kwid: 1. It has only a driver's side airbag, whereas the standard version has no airbags. Renault may have issued yet another silent recall of the Kwid. Reasonable price, decent quality, just fair cars. Often. 6.22 lakh (ex-showroom). ? NCAP is an independent body that is focused on ensuring vehicle safety across commercial vehicles. It surprised me how they failed to do same in China. And also that in any case, the Duster did not fit the sophisticated image that Renault wanted to portray in China. The Company has very wide portfolio of the Cars. So what would have been a realistic and workable model for Renault in order to succeed in China? I am from India so that is what I can talk about. Foton revived the German marque Borgward in 2015 and its marketing in China has been solely focused on the brand origin even though not a single vehicle is currently produced in Germany. I bought it after seeing its good reviews and stunning look. Be impactful, unique and creative, avoid conventional messages, surprise with a different attitude and repeat what you have decided to say with confidence and consistency. Plus Renault did a complete backflip in China when it introduced the City K-ZE at the Shanghai Auto Show in April 2019, the shockingly low-cost interior a disturbing eyesore in a Formula 1 background. Using Formula 1 as a launching platform wasn’t necessarily a bad idea: it helped give credibility to the brand in India. The Kwid’s lack of refinement is also quite evident at lower speeds. Triber though became sucessful as nobody ever saw such a cheap and small MPV before and also becase most owners use it as 5 seater with big boot and not as 7 seater. I would say it is a very well researched article and I couldn’t agree more. Priced at a premium of Rs 30,000 over the manual version, the KWID Climber AMT makes for an excellent city car. The Duster is a no-brainer for Chinese production and the Logan would have helped establish a safety net of sedan sales that can be relied upon if and when SUVs peter out somewhat. A factory with an annual capacity of 150.000 units was built in Wuhan in the Hubei province and Carlos Ghosn set the sales target at 500.000 annual units by 2022. Fan Bing Bing was Renaut’s ambassador in China at launch in 2016. The Renault Kwid is an entry-level crossover produced by the French car manufacturer Renault, initially intended for the Indian market. In a Chinese market absorbing hundreds of new models each year, this was suicidal. Granted, hindsight is 20/20. What do you think ? So with the Duster, Renault wouldn’t be pursuing a low-cost strategy, but would place a European brand at similar rates and when faced with a local and a foreign brand at the same price, a majority of Chinese buyers would still opt for the foreign brand. Later, in January 2020, the carmaker introduced the BS6 compliant version of the small hatchback, updating both the 800 cc model as well as the 1.0-litre version of the Kwid. For a part understandable – at least half a dozen key factors have to be aligned: the company’s vision (overly ambitious and hard-headed Charlos Ghosn vs down to earth / slightly naive board members), the financial backbone, the ultimate brand message, available resources, workable risk-matrix, envisioned footprint / growth path in new market, points of sale. The car, although, saw better scores in terms of dual airbags. (Part 4), Strategy: How the Chinese are setting themselves up for success (Part 4: Asia). Renault almost never pitched itself as a premium European brand in India. And that is precisely why it would have been a smash hit in China where the unabatted search for the best possible deal is a national sport and source of great pride. As a regular BSCB reader you will be very familiar with this decade-long success story. Today Maruti and Hyundai alone have 70% market share with Kia, Mahindra, Tata, Toyota, Honda having around 5% each ( give or take some) and you are looking at a market with only 7 brands have 95% share which makes it very difficult for a new player, still renault played very well as you pointed out on its strength of providing fair cars for a good price. Even after Reverse mode, Only RPM increase. The estimated price of the Renault City KZ-E (Kwid Electric) will be around Rs. I am not suggesting to import the Duster to China but to produce it locally. And then again nothing stops them from importing Koleos and Talisman from Korea like they did before if there was demand for something more upmarket. Renault is also European brand and so are peugeot and MG ( at least by heritage ) but nobody considers them when wanting to buy a European car and directly go for Skoda or VW. The Renault Kwid received its mid-life facelift in 2019 with major design and styling updates giving it a more upmarket look. A respected image combined with value-for-money vehicles is the blockbuster recipe behind the global, decade-long success of the Group’s Entry lineup under the Renault badge. Given they have to be imported at high cost, this is a very encouraging trend for the French manufacturer which will start production in China shortly.” Little did we know… Also, these less urbanised regions have been for the past 5 years one of the main Chinese engines of economic (and new car sales) growth, giving this strategy even more relevance. An NCAP official said that with Renault's limited progress, they must offer the one-star car as the standard version. Today it is one of the hottest segment of Indian car market and a very profitable one for automakers. Robustness as both a reputation and a car design language in turn becomes very sexy in the coveted big cities of the Chinese East, especially with young and trendy women already converted to French luxury. India is more similar to China in that regard but there is one thing, when Renault entered China market was full already, in India there is way more space for new players and to differentiate from others. 5 tips to help you properly maintain your Renault KWID. One of the biggest plus points of the new Renault Kwid Climber is its optional automatic or AMT (automated manual transmission) gearbox. Coincidence: I happen to have De Meo’s provisional itinerary, There’s a slot in 3rd week of August. One thing I’d like to mention is related to your suggestion to import Duster on this market. The charity initiative targets consumer protection by evaluating vehicle designs for performance against multiple safety hazards. It will likely launch in 2022, according to Renault. A much needed Duster L 7-seater variant – Certainly agree on yr explanation how Renault India failed miserably with its communication relating to the (Russian Duster based) Captur. Corporate Renault jet will pick you up wherever you wish (Ghosn paraphernalia still on board). India, Brazil,Russia and South Africa for example are more like less matured versions of European market or atleast very similar in key things as just like Europe :- Ürümqi car buyers were very fond of the imported Koleos back in 2014. 4.73 lakh. The recently revealed Renault KWID may look look like Chevrolet Trax or a Fiat 500X-sized vehicle in photos, ... has failed. Barely 20 years ago, there were almost no private cars on the roads, even those of megacities such as Beijing, Shanghai or Guangzhou. He may argue that the truck driver could have spotted him and applied the brakes but the visibility of such heavy vehicles is extremely poor. This way, all car brands launching here start from a blank sheet, and can craft themselves an image devoid of any historical baggage. In this context, why not build on existing success and brand recognition and focus on these regions to develop the brand? The Kwid’s AOP score of 7.78 out of 17 is almost close to the Seltos’ 8.02 rating. Bear in mind the EU and US brands successful in China have much deeper pockets than the French brands. First-in-segment and yet another element of the Kwid inspired from … – On BSCB ‘Renault / India’ has been source for debate in the past, and no matter how hard they try, foreign brands – including Renault, less so Honda and currently the Korean brand – face the immense popularity of mighty Maruti, with its 50% market share. Same goes for Triber. The Duster was launched as a Renault in Brazil and Russia in 2011. This last argument is obsolete, as we have seen in Russia, India and Latin America where Renault’s brand image has not been damaged, on the opposite. Producing it locally would however make the Duster an aggressive competitor. The faulty accelerator pedal and sensor have caused sudden increase in speed and engine rpm. Renault never even approached this figure. Have demand for small diesels ( atleast in India). One more thing that I observed which I am not sure if you can agree on is that Renault has always been sucessful in markets similar to its home market Europe. Renault has booked more than 1,00,000 cars … Spot on. – Any idea why the well received Lodgy tanked?? 2. Renault is currently a decade old brand in India now. After releasing both the Koleos and Kadjar in 2016, Renault did not launch a single new locally-produced nameplate over the following 3 years, waiting until Q4 2019 to kick start both the Captur 2 and City K-ZE, even though the latter is based on the Indian Kwid from 2015. China buys sedans ,the top selling car there is the Toyota Corolla / Levin twins. The Renault Koleos I was popular in China as an imported vehicle. On April 14, Renault announced a strategic reorganisation of its Chinese operations that implies the future of the brand on this market would rest of the frail shoulders of the City K-ZE small electric hatch. I remember when Renault launched Duster in India, there was no competition for it, Renault pratically created a segment and the car became a huge hit with people. Kwid sales after launch. Welcome to the world of the New Renault Kwid which features a host of new styling, design and safety features. Developed under the body code BBA, the Kwid is the first car to be based on the new CMF-A platform jointly developed by Renault and Nissan. We have many times seen the same car sold internationally perform poor in India in terms of safety due to lack of appropriate rules and less awareness. From a rather satisfying start at 72.000 sales in 2017, the brand fell -31% in 2018, -64% in 2019 and -89% over the first quarter of 2020. They had brand recognition and image, in Colombia Escobar raced Renault 4 when he was young. This … I think China was full because of large number of domestic brands and while India back then seemed to have space but majority of market was and is still controlled by just 2 brands. PS: I have quite a substantial daily automotive news feed (among which banks), but not one article even comes close to Dr Gasnier’s “Renault vs China” write up. Test Drive: Is the Kia Seltos worth all the hype? 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( Kwid Electric ) will be around Rs this recipe should fail in China have much deeper pockets the..., and your analysis of mid-tier cities is very interesting, thank you very much Rick for very! Wholly owned subsidiary of Renault Kwid imports to survive in China in years... Produce it locally would however make the Duster to China but now you have presented facts might.

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