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. Hi JP – thanks for your note. As a regular BSCB reader you will be very familiar with this decade-long success story. Maruti sells Ertiga small MPV which is again difficult to beat so Lodgy was left as nobody’s choice. When it comes to buying a European mass market car in India, Volkswagen and Skoda are the go to brands for almost everyone and Renault probably knew this already and that is why it launched products like Kwid and Triber and is developing a Hyundai Venue competetior and a Maruti Dzire Competetior and not playing against Octavia or a Kodiaq. By building on the luxury associated with French products, all the while offering reliable, robust and good value vehicles. As the 2011 French ad touted (above), the Duster is “shockingly accessible” and in China that means Renault can fight with such blockbusters as the Haval H6 and Geely Boyue with similar pricing. Renault may have issued yet another silent recall of the Kwid. Venucia, its low-cost brand, sells it as the e30, while Dongfeng itself offers it through three of its subsidiaries as the Aeolus EX1, Forthing T1 and Glory E1. Hyundai Eon, Maruti Suzuki's Celerio and Mahindra Scorpio also failed the crash tests. It surprised me how they failed to do same in China. Before 2016 and the start of local production which was supposed to unlock substantial Chinese volumes, the imported first generation Koleos, was the best-selling and sole truly successful Renault model in the country, with over 30.000 sales in 2014. 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. A much needed Duster L 7-seater variant French luxury brands are extremely popular with Chinese buyers. 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. 5 tips to help you properly maintain your Renault KWID. I was sceptical about Duster in China but now you have presented facts It might actually work. November 3, 2016 August 20, 2017 Guest Author 0 Comments Kwid AMT. 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. – 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. Wanting to play on all fronts, Renault found itself marred with a series of desired positions without ultimately anchoring any. The New Kwid becomes more modern and assertive; the new front fascia exudes a sense of aggression which is nowhere to be found amongst its competition. The faulty accelerator pedal and sensor have caused sudden increase in speed and engine rpm. After all, it is also in the less urbanised parts of Europe that the Duster has carved itself a spectacular popularity – and borderline cult following – so preciously successful grassroots strategies could have been reused there, starting with a local version of the annual Dacia picnics. It would have been a much cheaper exercise than trying to establish it in the ultra-competitive eastern seabord markets. Car Running not possible?? When it comes to buying a European mass market car in India, Volkswagen and Skoda are the go to brands for almost everyone and Renault probably knew this already and that is why it launched products like Kwid and Triber and is developing a Hyundai Venue competetior and a Maruti Dzire Competetior and not playing against Octavia or a Kodiaq. Five popular passenger vehicle models in India -- Maruti's Celerio and Eeco, Renault Kwid, Mahindra Scorpio and Hyundai Eon -- have failed crash tests by vehicle safety group Global NCAP with 'zero star' ratings. On the other hand in China they were going premium with 2, to be hones, mediocre products. NCAP refers to the Global National Car Assessment Programme, which is based out of the United Kingdom. New Models Industry News Rumours Speed Tech. I am sorry I am replying almost after a month, I did not check my email. 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. 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. 1. Bear in mind the EU and US brands successful in China have much deeper pockets than the French brands. We’ll discuss . * This is…. 2. NCAP is an independent body that is focused on ensuring vehicle safety across commercial vehicles. – Any idea why the well received Lodgy tanked?? It has scored a 0 star safety rating. Renault Kwid Service. 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. 3. Renault has booked more than 1,00,000 cars … Given the choice between a European and a Chinese brand for the same price, a lot of Chinese buyers would still opt for the European one, especially in Tier 3 and 4 cities. An NCAP official said that with Renault's limited progress, they must offer the one-star car as the standard version. I bought it after seeing its good reviews and stunning look. However this region is already saturated with private vehicles, having reached a sales plateau and hampered with licence plate restrictions at the time of Renault’s arrival. But from that figure the brand’s imports then thawed to just a trickle: a mere 24 Renaults were imported in China over the first quarter of 2020, despite an aggressive marketing campaign in 2017-2018 supporting the Espace. French automaker Renault's popular car in India, Renault Kwid failed crash tests that were conducted by NCAP. and small sedans like Logan and The estimated price of the Renault City KZ-E (Kwid Electric) will be around Rs. The Japanese automaker later requested NCAP to test a vehicle which had double airbags, which resulted in the agency granting it a three-star rating for adult occupancy protection. 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…). Hey Matt! Chinese demand for the Renault Duster already exists. Hope Renault’s business intelligence takes note. Road Tests Driving Impressions Buying Used Cars. Kwid was launched on 24 th September 2015 with a jaw dropping price tag of 2.56 lakhs (Ex-showroom) for the standard variant and 3.53 lakhs (Ex-showroom) for the top variant. My Favourites: 0 My Compare List: 0 Car Alerts Dealer Login Log Me In Register. The Duster was launched as a Renault in Brazil and Russia in 2011. This could have been a temporary fix, but given how individual cars play a role in social status in China, I am not entirely convinced that importing the Duster would have reverted the fate of the brand in the long run. Renault Kwid: around the globe in the world's cheapest car. As you mentioned earlier in your article however, I wholehearted agree that in such a crowded and competitive market, if you have good products but poor results like all French brands do, then it must be a market analysis problem. And there are no valid reasons why this recipe should fail in China. The Kwid’s sleek style is underlined by new Signature Ornate Lighting. 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. I bought a Kwid 1.0 L (RXT Optional) on May 2017. French auto major Renault's popular entry-level car in India, Kwid showed only limited progress in safety rating, scoring only one star for adult occupant protection in a crash test, according to automobile safety agency Global NCAP. At the Time of Launching of kwid, The Renault thing that this car would transform the brand’s fortunes in India. 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. Even when renault launched Kwid, it did not shatter its brand imagine, infact people liked the offering a lot. Fan Bing Bing was Renaut’s ambassador in China at launch in 2016. Instead, the brand chose to follow a direction that rings right in the corporate corridors, but is in fact both passive and dangerous because overused: the seductive chant of the “sophisticated European brand” targeting eastern coastal cities whose purchasing power is similar to that of Europe. It has only a driver's side airbag, whereas the standard version has no airbags. 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. One of Renault’s main mistakes has been its Chinese positioning. 2.They prefer hatchbacks ( Kwid, Sandero or Clio) and compact crossover ( like Duster or Captur ) This … One thing I’d like to mention is related to your suggestion to import Duster on this market. Renault is currently a decade old brand in India now. In fact, Renault’s small size in China should have encouraged the carmaker to act as a niche player at least in its first few years of local production. 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. And another thing is Renault has always been good in providing “cars for the people”. 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. Also what is with VW and Škoda in India? 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. Check your tyres. For starters, Renault doesn’t seem to have invested in much sound-deadening … Using Formula 1 as a launching platform wasn’t necessarily a bad idea: it helped give credibility to the brand in India. 2018 Renault Kwid has been in the news this week for failing the safety crash test. Nice article, lots of great elements there, thank you. The charity initiative targets consumer protection by evaluating vehicle designs for performance against multiple safety hazards. The Renault Kwid driver misjudged the space and showed his impatient behaviour by squeezing into space. This is why it does not sell Tailsman or new Koleos in India and it has worked great for them. 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. Renault never even approached this figure. It is incredible how no French brand has managed to make it work in China in last years. 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. 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. The Kwid AMT offers a standard 'brake hold' feature when the car is at a standstill and in 'Drive'. For example, if we look at the situation Citroen is in at the moment, we can clearly see how selling cheaper cars for a long time has negatively impacted the brand’s image in China, despite being implanted there for decades. And also that in any case, the Duster did not fit the sophisticated image that Renault wanted to portray in China. 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. But in a market where more than 250 car brands including roughly 170 Chinese fight for recognition, making its way towards the very short car shopping list of the Chinese consumer requires marketing pioneering. Similarly, Hatchback is a huge strength of renault and a huge contributor of its sales but China hates them. How could a large international brand with more than 120 years experience fail so quickly in China? Ürümqi car buyers were very fond of the imported Koleos back in 2014. Skoda, which has spent the best part of the past 30 years trying to erase a dubious reputation, reinvented itself as a semi-premium offering in China, signing its local communication with a “Since 1895” worthy of the greatest watchmakers. The justification provided by Renault for not producing the Duster in China, where an almost unfathomable 45 million SUVs were sold over the past 5 years (not a typo), was that the Wuhan factory could only produce the CMF platform. It will likely launch in 2022, according to Renault. 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. Renault Kwid, Honda Mobilio fail crash test. "Safety is of paramount importance for Renault and all our products meet and exceed the requisite safety standards set by Indian regulatory authorities," Renault India's spokesperson said. You can’t sell cheaper than the Chinese in China, and with a starting price of around 110,000 yuan (14,000€), the Duster would be aimed at the all-time best-sellers in the SUV segment such as the Haval H6 which isn’t considered low-cost at all. * Full Year 2020 Reports * 40 markets available, BSCB Exclusive: The car landscapes of 45 Chinese cities and regions, 10 countries and 9000 km in a Dacia Duster, World First Half 2020: Discover the Top 800 best-selling cars globally, The world's best-selling car vs. the Australian Outback. Hey! 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. Renault almost never pitched itself as a premium European brand in India. This way, when Renault was orchestrating its grand entrance as a local producer in China five years ago, it had free rein to create a tailor-made identity to best woo the Chinese consumer. Honda's Mobilio also fared poorly in the … Can a new city car that costs £4000 survive a winter drive from India, where it is built, to France, where it was designed? Reasonable price, decent quality, just fair cars. Dealers have also started accepting booking amounts to the tune of Rs. However, Renault like other carmakers also produce a car in India and export them to be sold in the international market. The recently revealed Renault KWID may look look like Chevrolet Trax or a Fiat 500X-sized vehicle in photos, ... has failed. It’s a no brainer. First-in-segment and yet another element of the Kwid inspired from … Very interesting article. The Line: Saudi Arabia unveils city with no roads, cars, Pakistan's top court approves singer's plea against Ali Zafar, WhatsApp group invite links, user profiles accessible via Google search, Centre will sponsor vaccination of healthcare, frontline workers: PM Modi, Renault Kwid, Honda Mobilio fail NCAP crash tests, Renault India counters poor safety scores. Renault has published a teaser image showcasing the Kwid’s AMT controller knob. Barely 20 years ago, there were almost no private cars on the roads, even those of megacities such as Beijing, Shanghai or Guangzhou. I agree it could have been helpful to launch the brand, and your analysis of mid-tier cities is very interesting. The brand could and should have banked on the clearly feminine image of French luxury that all Chinese women are obsessed with – a strategy that, by the way, could also lift DS from its Chinese abyss. making its way towards the very short car shopping list of the Chinese consumer requires marketing pioneering. How much has brand visibility impacted their results in this market? women living in the less urbanised regions of China, when it introduced the City K-ZE at the Shanghai Auto Show in April 2019, Borgward SUVs in the remote town of Bayanhot, Inner Mongolia in 2018, craving the Duster 4WD so much that it is now available in China as a parallel import. This time, the carmaker is replacing a faulty accelerator pedal and sensor that may cause sudden increase in speed and engine RPM. Renault’s popular hatchback Kwid has undergone yet another crash test at the Global NCAP.This time Renault sent the South Africa-spec model as part of Global NCAP’s Safer Cars for Africa initiative. – Certainly agree on yr explanation how Renault India failed miserably with its communication relating to the (Russian Duster based) Captur. This version scored a zero for adult occupant protection, although obtained two stars for child occupant protection. What surprises is your remark “VW and Skoda are the ‘go-to’ brands for almost everyone”. The Renault Kwid is available in 5 variants such as Standard, RXE, RXL, RXT and Climber. 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. However, in 2015 when the Renault Kwid was launched, it was quite a new brand. Private video reviews of Renault Kwid & official video ads of Kwid. Apart from the Duster, which was launched way back in 2012, Renault has failed to produce a hit car in India. Hopefully it will land on Mr De Meo’s desk! When it is time to have your Renault Kwid Serviced you want a team of experts who have been trained to provide the best technical and maintenance service possible. Renault Kwid hatch has once again failed to score any points in the crash tests conducted by ASEAN New New Car Assessment Program (NCAP). George V Paris okee? Coincidence: I happen to have De Meo’s provisional itinerary, There’s a slot in 3rd week of August. Knowing that you need to maintain your car is all very good and well but in order to reap the rewards of Renault KWID maintenance, we need to know the how. The Kwid’s lack of refinement is also quite evident at lower speeds. Top Indian cars fail global NCAP crash test, get 'Zero star' ratings. Might even Renault outsells them. Subscribe News . 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. 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. This way, all car brands launching here start from a blank sheet, and can craft themselves an image devoid of any historical baggage. 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. Test Drive: Is the Kia Seltos worth all the hype? The Renault Kwid received its mid-life facelift in 2019 with major design and styling updates giving it a more upmarket look. When is your meeting with the Renault board? Kwid sales after launch. The Renault offered good head protection to the passenger while it was reported adequate for the driver. So what would have been a realistic and workable model for Renault in order to succeed in China? I wrote a first version of this article in French for the professional website Autoactu.com. In a Chinese market absorbing hundreds of new models each year, this was suicidal. 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. Again Renault’s positioning in emerging markets hasn’t damaged its image at all, what killed Renault in China was not taking enough risks. 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. It created uproar in the market. Post was not sent - check your email addresses! Excellent job! Strategy: Will the European new car market ever grow again? 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. A very difficult concept to grasp for the rest of the world is that the car is a very new consumer product in China. Same goes for Triber. Welcome to the world of the New Renault Kwid which features a host of new styling, design and safety features. So the customer reach of the Renault Kwid was restricted due to the lesser service stations. ? My follow-up questions are: Have these brands been shortsighted on advertising budgets? (Part 4), Strategy: How the Chinese are setting themselves up for success (Part 4: Asia). NCAP now issues the vehicle safety standard through means of ratings allotted to them. What do you think ? This despite being priced very high compared to its locally-produced competition, a typical trait of imported vehicles in China which can work both ways: discouraging buyers or screaming exclusivity and attractiveness. Thank you very much Harshit these are great insights. 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. As the whole industry is getting ready for the Frankfurt Auto Show,…, Chinese carmakers are starting to make big waves in the MPV segment (Beijing Auto Weiwang…, The Wuling Hongguang launched this month in India as the Chevrolet Enjoy. Today it is one of the hottest segment of Indian car market and a very profitable one for automakers. 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. Sorry for a very late reply. Below we have listed our top 5 tips to help you properly maintain your car. 6.22 lakh (ex-showroom). Once the brand has established, without breaking the bank, a reputation of sturdiness in the harsh environments of these less urbanised regions of China (think Duster in the French Alps), this marketing model could then feed itself. In early May, Renault Kwid scored zero in crash tests for its three variants. Customers in India are quite concerned about reliability, after sales service, maintenance cost, etc. Have demand for small diesels ( atleast in India). Good feedback JP. Strategy: How can Chinese brands unlock their home market? They are considered premium? That’s what they did with Duster in India and what they are doing with Kwid and Triber now. 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. Granted, hindsight is 20/20. I am not suggesting to import the Duster to China but to produce it locally. 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