Renault Sandero India launch put off

It seems the launch of the Mahindra Renault Sandero in India has been postponed for now.

French auto major Renault has decided to slam the brakes on its plans to build the Sandero hatchback on Indian soil. Blaming it all on the not so conducive cost structure, the company has decided to put off the venture for the time being.

Mahindra Renault Sandero photo

Renualt thus joins the bandwagon of car makers who have had to put off mega product plans owing to the crisis-ridden economic structure. The company was planning to make the Sandero in India at the Mahindra-Renault plant in Nashik, which currently caters to assembly of the Mahindra Renault Logan sedan.

November and December 2008 were extremely bad for car-makers in India; though January and February 2009 showed a lot of promise and sales picked up. However, it is not the perfect time to manufacture and launch a car.

The Sandero, codenamed B90, had the potential to make Renault a formidable force from the Indian market. Small cars are where India excels anyway, and the i10 and A-star exports are proof of that. Renault currently does not have a small car in India – and a value for money small car is what kickstarts an auto major in India – not sedans. (Unless you are Honda! They cna get away with anything)

The company had initially planned to roll out the Renault Sandero from its Rs 4,500-crore Chennai facility being commissioned with global partner, Nissan. This plan too had been scuttled by the disintegrating economy. It may not yet be time to write off the planned venture as the French company has constantly reiterated that the setback is only temporary and that things will look up after the slowdown.

It may be recalled that Renault had done a rejig at its Indian subsidiary, post the resignation of its head of operations in the country, Sylvain Bilaine. Bilaine was Country General Manager for Renault in India. Post-rejig, Marc Nassif will be appointed Executive Director of Renault India and Country General Manager for Renault in India, responsible for all activities of Renault in India, according to the company.