Geely will bolster Renault presence in China, says GlobalData

August 10, 2021 Neel Achary Business Comments Off on Geely will bolster Renault presence in China, says GlobalData
Telangana, June 24, 2021: In order to strengthen its presence in rural markets and showcase the all-new Sporty, Smart and Stunning KIGER, Renault India introduced ‘Rural Float’, an initiative to cater the customers across Rural India. The ‘Rural Float’ is a fully functional mobile showroom, that has been designed to provide a complete Renault experience to the existing and potential customers. More than 27 towns across the state, especially in the rural markets had experienced and witnessed the flavoursome initiative by Renault India. Aiza, Kothakota, Nagarkurnool, Narayenpet, Jadcharla, Nalgonda, Trimalagiri, Kodada, Thallada, Palwancha, Yellandu, Jangoan, Gajwel, Sangareddy, Cherial, Ramgundam, Mandamarry, Jagtial, Kamareddy, Nazimabad, Kamaredy, Kalwakurthi, Wanaparthi, Yarrawalli, Gadwal, Makthal are to name some amongst the 27 towns. Commencing its journey from Haryana in the North, Bihar in the East, Madhya Pradesh in the West, Andhra Pradesh and Tamil Nadu in the South and Rajasthan in the Central, the mobile showroom has covered 233 towns across 13 States pan India in the country, traveling more than 40,000 kms over a period of three months. The ‘Rural Float’ is a one-of-a-kind innovative nationwide customer focused initiative during which around 2700 test drives were facilated to customers in the remote areas, who got a chance to witness and experience Renault India’s breakthrough product range and take home a unique experience. With ‘Rural Float’, Renault has been able to showcase the newly launched sub-four meter compact SUV, Renault KIGER to its potential customers in rural markets. Besides displaying the complete Renault product range including Kwid and Triber, several fun-filled activities were also organized for customers making it an exciting and cherishing experience. Renault, through this initiative, has reached out to more than 23,000 potential customers in markets like Rajasthan, Telangana, Gujarat, Madhya Pradesh, Tamil Nadu, Haryana. The ‘Rural Float’ also acted as a one-stop shop for enabling customers and prospects to connect with Renault for any product related enquiries or new bookings. Driven by innovation which has always been Renault’s hallmark, ‘Rural Float’ is yet another significant step to move closer to the customers in the remote areas and provide a Renault vehicle ownership experience. Together with its product portfolio expansion strategy to drive volumes in India, Renault is substantially increasing its network reach in India and introducing several unique and pioneering initiatives to ensure that customers’ have an unparalleled association with the Renault brand. Currently, Renault India has more than 500 sales and service touchpoints in India, which include 200+ Workshop On Wheels locations across the country

Following the news that Geely Holding Group and Renault Group have agreed to form a hybrid vehicle joint venture with focus on China and South Korea markets;

Bakar Sadik Agwan, Senior Automotive Consulting Analyst at GlobalData, a leading data and analytics company, offers his view:

“The joint venture will see Renault-branded hybrid vehicles being sold in China, but manufactured using Geely’s facilities, supply chains, and technologies. This is a positive development for Renault, which has made repeated to break into the lucrative Chinese market but was not able to capture buyers’ attention in the country.

“After several failed attempts to crack the Chinese market for over 20 years, Renault finally planned to exit the market in April 2020 and cancel its existing joint venture with local carmaker Dongfeng. Slowdown in vehicle sales and disruptions created by the COVID-19 pandemic were behind the decision. However, the joint venture with the largest privately-owned automaker in China may revitalize Renault’s position.

“For Geely, the joint venture will strengthen its role as a key powerbroker in the auto industry. The company has been aiming to expand its global reach and annual sales through partnership and/or acquisition of regional and/or global brands to enter new regions. Geely will rely on Renault Samsung Motors two-decade long presence in the South Korean market and localize Geely’s Lynk & Co’s energy-efficient vehicle platforms for local market.

“Geely’s most significant brands, joint ventures and OEM relationships include Volvo Cars, Polestar, Proton, Lotus, LEVC, Daimler, Smart, Volvo Trucks and now Renault.

“Global partnerships between automakers to leverage each other’s regional strength have proved to be a win-win in many cases and are now a preferred path for better bottom-line. The latest agreement is in line with Renault’s new strategic priorities ‘Renaulution Plan’ – as termed by the company and announced in early 2021, which aims at focusing on the Asian market. This includes a commitment to re-enter the Chinese market, but rather cautiously. The partnership with Geely presents Renault lesser risk than going alone.”

About Neel Achary 20380 Articles
Neel Achary is the editor of Business News This Week. He has been covering all the business stories, economy, and corporate stories.
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