Renault Duster's localisation to be increased to over 80 percent, prices may go down

Renault is in the pursuit to become a major player in India with higher level of localisation for its cars.

Sumit Sawhney, MD, Renault India has confirmed the plans of the company to increase localisation of the Duster SUV. Sawhney was talking to the media on the sidelines of a media drive of new Duster launched for Rs 8.46 lakh, early this month.

Currently, the Duster SUV comes with localisation level close to 70 percent and the target is to increase it over 80 percent by late 2016 or early 2017, reported Rushlane. The immediate benefit for the customers when companies increase localisation is price cut for the product. Renault India may adopt the same route for the Duster or the benefit will be used to balance increasing input costs.

Renault India is not a new company understanding benefits of higher localisation. One of the main reasons why Renault managed to price the Kwid at Rs 2.56 lakh (when launched in September 2015) was the 98 percent localisation it achieved. In addition to this, Duster's main rival, the Hyundai Creta, is manufactured with over 90 percent localisation since launch.

The popular SUV of Renault recently got an update. The vehicle with manual transmission is available in five trim levels â€“ Standard, RXE, RXL, RXS and RXZ. While the petrol base variant of the new Duster is priced at Rs 8.46 lakh (ex-showroom Delhi), the top of the line AWD (4x4) variant is offered at an introductory price of Rs 13.56 (ex-showroom Delhi). The new Duster, which comes with 6 speed Easy-R Automated Manual Transmission, claims to deliver a mileage of 19.72 kmpl (ARAI).