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This Rs. 2.6L Renault car is as disruptive as Tesla's!

22 Jul 2017 | By Ramya Patelkhana

Electric cars, self-driving vehicles, and Tesla (especially Model 3) are some things that come to everyone's mind when thinking of automotive disruptors.

However, American rally race driver Alex Roy says Renault Kwid is to India what Tesla Model 3 is to the world: a disruption!

Despite lacking advanced technology unlike Model 3, Kwid is a game-changer in India's auto industry.

Why? Let's find out!

In context: Renault Kwid: More than just a success story

22 Jul 2017This Rs. 2.6L Renault car is as disruptive as Tesla's!

Renault KwidAbout the French-Indian disruptor

French automaker Renault launched entry-level Kwid for the Indian market at Rs. 2.56 lakh in 2015; it was the brainchild of mathematician Gerard Detourbet.

Kwid is a five-door, compact crossover utility vehicle (CUV); it has an 800cc three-cylinder engine.

Nothing else is more attractive about Kwid than its price, but that's not what's important here.

Kwid is important because it represents India's automotive future.

Affordable cars are the requirement in India

New CarAffordable cars are the requirement in India

With an average wage that is just a fraction of those in most countries, India needs affordable yet reliable cars.

Renault wanted to make a car that is in-between two-wheelers and four-wheelers.

It learned a lesson from Tata Nano's failure that affordable cars shouldn't be cheap.

It decided that its car should offer more comfort/space, infotainment, and many other options at a lesser price.

StrategyMust give customers something they've never seen before: Detourbet

Renault wanted Kwid to "look and feel special" and kick-off a CUV craze.

To cut costs without sacrificing quality, Renault replaced its traditional global suppliers with local companies.

Instead of multiple suppliers, Renault relied on one vendor, which built trust and allowed customization of supplied items.

Detourbet's "merciless design-to-cost strategy" helped Renault build a good car under a strict budget of Rs. 2-2.5 lakh.

Renault Kwid: From sales to service

Kwid disrupted the auto market with many of its features, from sales to service. After-sales service is one such advantage that helps Kwid compete against entry-level rivals. Renault's traveling pop-up service takes care of the car if it breaks down anywhere, even in remote areas.

Kwid EffectHow did Kwid change India's auto industry?

About 90% of Kwid buyers are first-time car owners; it is affordable, doesn't look cheap, and has good quality.

Kwid successfully did something which its rivals failed at: serving low and mid-income households and bringing them onboard the auto-market.

There are more car-owning Indians now; so, other automotive players are under pressure to work harder and improve the quality and affordability of their cars.

FutureAn Indian future that's built on a Kwid

Kwid is reportedly the first car in India to "link production and affordability with first world iterations of pride and luxury."

So, Renault Kwid has raised the game, changing the future of cars in India.

Though India is several decades away from realizing electric and autonomous vehicles, a future for India's auto industry could be built on disruptors like Kwid.

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