Too much of anything is Good for nothing

Renault had decided to review its JV with M&M. After a disastrous performance of the Logan, and Nissan coming with huge plans, nobody would have expected such an announcement. So in India Renault will be with...

1. M&M for an upgraded Logan,
2. Nissan for Micra and future launches
3. Bajaj and Nissan for the small car project

Will this work? One country. One company. Three partners.

I really wonder, how can a company, who had still not landed up safely in Indian market, can make such a move. The culture of three different organisations and three different target markets will rip Renault more than its current form. This just shows the desperation Renault has to gain roots. Its rather wise to focus and get one opportunity on track than exploiting everything available.

Will Fluence have enough Influence?

Renault had decided to launch its Fluence in India, a new saloon, by the end of 2010. Around Rs 12 Lakhs, this car would be positioned in the entry level premium saloons alongside Corolla, Octavia and Civic. But will this change the fortunes of Renault in India?

Renault with its Logan had already been positioned in the minds of the Indian consumers as a cheap car maker with no great R&D. Though globally it is acclaimed that Renault is a potential manufacturer, the mistakes in Logan (as discussed in the earlier post), have ruined the brand image in India. So before the launch, Renault should first make an attempt to change the perception of the brand through brand building exercises. Otherwise, the Fluence will fail to sail along.

Can Nissan-Renault make a comeback?

Renault represented the Nissan Renault duo in India, by joining hands with M&M for its Logan. The JV happened in 2007 claiming a low priced car at the entry level sedan segment. the car was launched in both petrol (1.4 and 1.6)and diesel versions (1.5). The company had expected to sell an average of 2500 cars a month, but never crossed an average figure of 500 cars every month. When the industry had a boom last month with almost all players making growth, Logan was still in negative growth. Inspite of the JV with a leading automobile maker, M&M, who has an established network of dealers and service centres, the performance had led to a possible termination of the JV.

There is no one reason for the failure of the product. The product was claimed to be the cheapest in the entry level sedan segment which it never was (Courtesy: only 50% localised parts). This segment was dominated by Tata Indigo CS and Swift DZire. Also the car was a lot boxy, hwere there were sleek offerings from the market leaders and others like Hyundai in Accent and Ford in Ikon. Also the car was promoted as a low priced sedan for the entry level. All this resulted in the mismatch of the targeted segment and the positioning of the product.

Now Nissan has announced the entry to the small car market with Micra, giving three engine options and a price competing with other market leaders. Can the Duo make the offering right and win the mind and wallet of the Indian consumers?