KOLKATA, Aug 29: European car maker Renault India
on Thursday said its sales in volume term have been hit by the
current slowdown in the automobile industry in the country.
The car maker, however, is not resorting to any job
cut, but working on reducing costs and increasing efficiency,
Renault India Country CEO and MD Venkatram Mamillapalle said.
“We have been hit by the slowdown in the automobile
sector. Sales volumes have been dipped by 17-20 per cent till
date in the current year as compared to the last period,” he
said.
The company sold 86,000 units in 2018, he said.
Since its market share in the automobile industry is
2.4 per cent, there has not been any major jolt to the company
due to the slowdown, Mamillapalle said.
“Two models (one SUV and a small car) are giving
volumes but not to the extent we want”, he told reporters on
the sidelines of the launch of its new sports utility vehicle
(SUV), Triber.
The other reason which had impacted the sector,
particularly in the urban areas, is the emergence of ride-
hailing cabs.
“Ride-hailing cabs have an impact on the sales of cars
and people, mostly in the urban areas, are preferring for
shared rides”, he said.
Mamillapalle also said that the company would focus on
the rural segment of the country and increase the dealership
network in small towns and villages.
Renault official also said the Society for Indian
Automobile Manufacturers (SIAM),a national body representing
all major vehicle and vehicular engine manufacturers in the
country, had approached the government for reduction in GST
from 28 per cent to 18 per cent.
He said that exports to Latin American countries and
South Africa from India have been giving some cushion to the
company. (PTI)
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