French auto major Renault on Wednesday unveiled its global entry-level car 800cc Kwid and the model is expected to hit the Indian market around the festive season this year.
Developed with an investment of around Rs. 3,000 crore, the 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 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,” Mr. 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 (e-showroom Delhi).
Developed on Renault-Nissan alliance’s global common platform (architecture), Mr. Ghosn said, the car was a combined effort from engineers in France, Japan and India.
The car will have 98 per cent localisation, he said.
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.