Sumit Sawhney is CEO and Managing Director of Renault India. Sawhney was recently in Nepal for the launch of Renault’s Duster and Kwid. The Post’s Rajesh Khanal caught up with Sawhney to talk about Renault’s entry into the Nepali market and future strategies. Excerpts:

Although Nepal is a small market compared to other markets in South Asia, what lured Renault to enter the Nepali market?

Despite being a small market at present, automobile business has high potential in Nepal. Statistics show that the sector is one of the largest contributors to government revenue, while the annual turnover averages 10,000 units of four-wheelers. In addition, the sector’s business is growing an average of 30 percent annually which says a lot about the future prospects for the automobile business in Nepal. Out target is to secure a 10 percent market share in next two years. 

Besides, hatchback cars with aspiring designs, right features, right value and right services are a popular product here in Nepal. Likewise, the SUVs with a higher ground clearance and spacious interior are in high demand. Our products meet almost all these features.

Can you tell us about Renault products?

Renault is a France based car manufacturer which is selling its products in 125 countries across the globe. For the past four years, the company has been operating in India, where it has been able to increase its market share significantly. Two months ago, we launched our products in Sri Lanka as well. Renault products are synonymous with innovation, design and with the passion to drive and the passion to own.

How are your new launches, Duster and Kwid, different?

Duster is a SUV that is going head on with best selling SUVs in the Nepali market. Duster features 4x4 SUV capability, 1.5 TCI engine, unique electronic control system, automatic remote control system and ultra utility service. It also comes with advanced safety measures.

Similarly, Kwid, despite being an entry-level hatchback is a game-changer compact hatchback which comes with advanced technology, spacious interiors, additional safety features, excess boot space, besides ensuring high mileage compared to similar hatchbacks. Although it is a reasonably-priced car, it features a special type of seat-belt that helps minimise jerk which safeguards the driver. In addition, the car also comes with airbags in the passenger seats.

At a time when there already are so many brands in the market, how will Renault stand out?

Citing the competition with the existing brands, we have come up with innovation and game changing products, which are our unique selling points. Affordability, safety and service are our main mottos. Taking an instance of Kwid, which ensures a mileage as high as 25.17 kilometer per liter, we can claim our products to be cost effective. Similarly, our maintenance cost has been found to be up to 17 percent less than some other brands in the Indian market.

Besides, we are focusing on delivering quality after-sales services. We will be expanding our dealership services including showroom and workshop-based services to six outlets by December. By next year, we will be delivering after-sales services from 10 stations. In addition, we will be providing ‘service on wheel’ that will help our customers receive necessary service at their door steps.

What are your future plans for the Nepali market?

We are not here for short-term business. We have long-term vision and missions to carry out. We see a lot of opportunity in Nepal, provided we bring the right products. Supplying vehicles of Euro IV standards and environment friendly four-wheelers are also on the cards for the future.

Nepal is a market that has the potential to grow 

Johnny Oommen is the head of International Business—Passenger Vehicles at Tata Motors Limited. Oommen was recently in Nepal for the launch of Tata’s new, sporty hatchback, the Tiago. The Post’s Bibek Subedi caught up with Oommen to talk about Tata’s performance, plans and strategies and expectations for the Nepali market. Excerpts:

What are your expectations from the Nepali market?

Nepal is a small market but it has been showing signs of growth. Except for last year, when it was hit by a natural calamity, followed by the border issue, the market has been growing steadily. We don’t expect the Nepali market to explode but it is a market that has the potential to grow at a much higher rate and we expect our customer base to grow.

In the years to come, the major players in the industry will keep introducing new segments and customers will keep on accepting those products. For example, just two years ago, the crossover segment, or the small SUV segment, didn’t exist in Nepal. But a few players decided to bring it in and people accepted the product. So, we believe that as long as the product is something interesting and is of value, there will be enough customers to give the product a chance. Therefore, at Tata Motors, we are looking forward to expanding our product portfolio and introducing several new products.

Are there any specific plans for the Nepali market?

On the back of new launches that we are doing, we would like to be within the top two players in the Nepali market for passenger cars. We see that as something that is possible in the span of 4 to 5 years. We are working towards that end by making sure that we have an attractive and a wide product portfolio.

There is already a strong competition among products in almost all the segments in Nepal. What are Tata’s strategies to compete against market leaders in the automobile business?

Yes, the competition is always there. Even if you launch something completely new, it won’t take very long for your competitor to introduce a similar product. But we will differentiate ourselves from our competition in terms of customer experience, during both sales as well as service. We are fortunate that we have a very good partner like Sipradi Trading. They probably have the largest network in Nepal in terms of sales and service points. We are trying to trying to see how we can further enhance services on the experience front. Such differentiation will slowly get us ahead in the game. 

You are aiming to launch two new products every year in Nepal. When and what will be your next launch?    

We are trying to see if we can bring something in by March. I will not reveal much about the product, but our goal will be to be to enter a new segment.

Do you have any plans to assemble cars in Nepal?

I think given the scale and potential of the Nepali market, it does not warrant a manufacturing or an assembly facility. Fundamentally, a small market like Nepal cannot justify the cost of setting up an assembly facility. We believe that it is a market that can be served adequately through importation. Having said that, if a manufacturer is interested in setting up an assembly line or a factory, and if the government introduces an automobile policy—which is lacking till date, it might be an option for the future.