Looking at 2020 with cautious optimism: Renault India MD Mamillapalle

“The journey back to the pre-Covid-19 growth rate will comprise strategic cooperation and resilience across the value chain,” he said

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Renault India | Auto sales | India’s rural markets

After Renault India reported 75.5 per cent growth in sales for July, the highest among all carmakers in the country, Venkatram Mamillapalle, managing director, Renault India, said: “We are focusing on consolidation, with the approach and intention of bouncing back stronger. We look at 2020 and the mid-term with cautious optimism and hope.” He said the firm was committed to its India strategy, and was equipping itself to deal with the new normal.

“The journey back to the pre-Covid-19 growth rate will comprise strategic cooperation and resilience across the value chain,” he said. Renault India sold 6,422 units, after selling 3,660 units last year.

The growth was led by its new Triber automated manual transmission (AMT) and Kwid, and the rural market, which now accounts for 25 per cent of the company’s sales. The company said that it will strengthen its offering with the new Duster soon. During January to June, the company reported a 29 per cent decline in sales, in an industry that shrunk 47 per cent.

“We have taken strategic decisions which have helped us to consolidate our operations, and also safeguard all our stakeholders,” said Mamillapalle.

He added, product offerings were strengthened with the new Triber AMT, which was launched towards the end of May, and a new KWID Range with a BS-VI in manual transmission (MT) and AMT versions. Both these products are volume drivers for Renault and have helped the firm to hold its position.

Besides a host of new schemes, Renault enhanced its digital capabilities and portfolios with online booking options and other interventions.

On the way forward, he said, Renault would soon launch Duster with an new turbo engine, making it the most powerful SUV in its segment. While speaking about the challenges faced by the supply chain and sourcing, he said, these include drop in vehicle sales, leading to decline in requirement, frequent changes in schedules to suppliers, constraints faced by suppliers — manpower movement, material availability, restriction in working hours and number of people and delay in development due to regulatory restrictions and thereby non-availability of skilled manpower.

“At the Alliance (Renault and Nissan) level, we have more than 300 tier-1 parts suppliers and thousands of sub suppliers located across India who supply parts to us for the domestic and export business. In addition, we have service support from many vendors,” he said.