Developed with an investment of around Rs 3,000 crore, the SUV-shaped small car will be powered by an 800cc petrol engine. The company is looking to make India a regional hub for exporting the new car.
"The Kwid will be a game changer and it will be at the entry-level segment that accounts for 25 per cent of the Indian car market today," Renault Group Chairman and CEO Carlos Ghosn said here after unveiling the car.
He said Renault has set a target of cornering 5 per cent market share in India and the new car will play a big role in it.
"Renault Kwid will be a big contributor to our India growth story first, secondly in other emerging markets and then globally," Ghosn said.
The Kwid will take on established players like Maruti Suzuki and Hyundai in the segment.
While Maruti Alto800 is priced between Rs 2.83 lakh and Rs 3.4 lakh, Hyundai Eon is priced between Rs 3.09 lakh and Rs 4.22 lakh (ex-showroom Delhi).
Exuding confidence of Kwid doing well in India, Ghosn said, at present, the products available at the entry-level segment offer either affordability or attractiveness or innovativeness, but the Kwid will offer all of three attributes.
Developed on Renault-Nissan alliance's global CMF-A platform, Ghosn said, it was a combined effort from engineers in France, Japan and India.
The car will have 98 per cent localisation, he said, adding that it could be exported to neighbouring countries only as shipping it to other emerging markets like Latin America will not be cost-effective.
"So we can make India a regional hub of exporting the car to neighbouring countries and to some markets in South East Asian countries," he said.
Car sales in India in financial year 2015 stood at 18,76,017 units compared with 17,86,826 units in the previous fiscal, up 4.99%, according to the Society of Indian Automobile Manufacturers (SIAM).
Previously, Renault's presence in the hatchback segment was limited to Pulse with a starting price of Rs 5.03 lakh (ex-showroom Delhi). The company sells six models in India, including the popular SUV Duster and newly-launched MPV Lodgy.
In FY14-15 Renault sold 4,006 units of cars as against 10,367 units in FY13-14, while in utility vehicles, it clocked 39,378 units as against 47,001 units in FY13-14.
Alliance partner Nissan on the other hand had sold 26,589 units in FY14-15 as against 22,603 units in the previous fiscal. Its utility vehicle sales were at 20,885 units compared with 15,421 units in FY13-14.
At Davos last year, Carlos Ghosn had said Renault-Nissan alliance was looking to have 10 per cent market share. In the past, the alliance had tried to form a partnership with Bajaj Auto for a low cost car but it didn't materialise.
Renault-Nissan Alliance has a plant in Chennai, where they have invested Rs 4,500 crore with an initial annual production capacity of 4 lakh, which can be scaled up to 4.8 lakh.
The plant exports to over 100 countries, making Nissan the third biggest exporter of cars from India. The alliance employs more than 15,000 people in India.
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