THE RENAULT KWID: DISRUPTING INDIA’S HATCHBACK MARKET Page |1

Marketing
Management: case 5

Mohammed Yaseen Qureshi

PES1202202920
MBA ‘C’ Section
December 16, 2022
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1.
Renault India was facing a downtime when it entered in the automobile market of India with
the launch of many of its cars. The only product of Renault which tasted success was the
Renault duster which was launched in 2012. Renault India, with their only successful product
In Indian automobile industry were not happy and wanted to evolve with the market. Renault
India segmented and targeted the entry level car buyers and planned to introduce its second
hatchback car Renault kwid. The first car which many people do not even recognise was
Renault pulse. Which was not a successful product. The launch of Renault kwid targeted entry
level customers who wanted a strong built car which was spacious and affordable. The Indian
entry level consumer market was shifting from just regular small cars and were showing
interests into featured small cars, but price was becoming a major factor here. Hence, Renault
decided to launch kwid in competition with Hyundai and Maruti Suzuki who were already
booming the small car market with Hyundai santro, Hyundai i10 and Maruti Suzuki alto.
Renault targeted the fuel efficiency and ruggedness of the kwid to make it their unique selling
point. Renault run global NCAP tests on the kwid in which it scored the best safety rating
compared to the competitor’s cars. Renault focussed on the customer shift towards features and
introduced navigation system, Bluetooth infotainment, alloy wheels, and a wide SUV type
design which its competitors very heavily lacked. Renault launched kwid at an aggressive base
price of ₹2.57 lakhs.

2.
The Maruti Suzuki ltd. And Hyundai motor company should introduce the new entry level
products in the market or upgrade their existing entry level cars. With the customers’ shift
towards features and safety, both these companies should take in consideration about the built
quality of their cars. As we already know, Maruti Suzuki ltd. Produces one of the worst built
quality cars. Hyundai was neither less compared to Maruti. so, when Renault mentioned about
the safety rating of the car, that gave the customers a better option to consider while buying the
cars as both Maruti Suzuki and Hyundai did not have a good safety rating. Maruti Suzuki ltd.
And Hyundai motor company have to re strategize their interior development in cars. They
have to produce good interior cars with music system, good features, navigation, alloy wheels,
and a sturdy dashboard in the cars. The case is published in the year 2017, but in the present
2022 scenario, both these companies have already redeveloped their strategies and introduced
or upgraded their entry level cars. Hyundai now has a face lifted Hyundai santro with amazing
interior, exterior and features. Maruti Suzuki introduced Maruti Suzuki Nexa ignis and new
gen swift with best looking interior and exteriors. what is left to be improved by these
companies is their built quality which still remains the worst.

3.
The following points can describe kwid’s performance compared to the competitors’ cars in
India. These points are the one which lack in competitor’s car.
• Built quality: even though the car scored just 1 star in safety rating, the built quality
compared to the competition was much better. The competition cars scored zero stars
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in safety rating or were never tested. These cars could take in more impact in
comparison.

• Design: Renault designed kwid with a very rugged and wide look. This car looks like a
baby SUV. The design of kwid makes it look much expensive rather than just making
a curvy or boxy design like its competitors. Kwid’s design makes it look like an
expensive car and not an entry level car. Kwid also offers alloy wheels and good
exterior trim with the top 2 variants whereas no competitors offer this even in the top
end variant of their cars.

• Fuel economy: Renault claimed kwid to give fuel efficiency of 25kmpl in good driving
conditions. Even if we get practical with the mileage and the Indian road conditions,
we can at least expect a minimum of 22kmpl which no petrol competitor car could ever
offer. The competitor car Hyundai santro offers a mileage of 15kmpl and Maruti Suzuki
alto offers a mileage of 17kmpl.

• Drive modes: Renault kwid offers 2 driving modes i.e., eco mode and normal mode. In
eco mode, this car gives you a pleasant increase in mileage and is best suited for city
usage. It also cuts off the engine when a signal is detected that the car is in stationary
position for more than 10 seconds. As soon as the clutch is pressed again to move the
car, the engine is automatically turned on.

• Variants: kwid comes in 6 variants and also with automatic transmission variant
whereas only Hyundai santro is offered in automatic variant. Maruti Suzuki alto did not
have an automatic variant. The competition companies offer only 2 variants of their
cars whereas Renault offers 6.

• Interior and features: Renault kwid come with a compact and packed interior rather than
plastics everywhere. It also offers Bluetooth infotainment system and navigation
system which does not exist in any entry level cars expect Renault’s kwid.

• Engine performance: Renault kwid offered a powerful performance compared to other

competition cars where it produces approximately 55 horsepower with its 3-cylinder
800cc engine loaded with electronics. Kwid offered a very smooth ride with very good
quality of suspension and body chassis.