Renault India to launch compact MPV next. Is it a wise decision for a shrinking segment?

Renault hasn't tasted the envisioned success with the Lodgy. However, the French carmaker is yet to give up.

Renault MPV — Renault Eolab Concept (representative image)Renault

Renault India Private Limited is currently in the process of launching Captur premium SUV in the country. The new launch is in line with the carmaker's plan to bring a new product every year in India. It looks like a compact MPV will be the new model for next year.

A slide from Renault's 'Drive the Future' mid-term plan from 2017 to 2022 makes it clear that the next India-bound model is a compact MPV. The vehicle is reportedly codenamed RBC and it will be an all-new model to be developed specifically for India. The low-cost MPV will be in line with the Datsun Go+ and it will make use of CMF-A platform that also underpins the Kwid, reports Autocar.

The Renault MPV will be launched in three-row and seven-seat configuration. It will be positioned below Maruti Suzuki Ertiga as entry-level MPV. The compact MPV will also come with more localisation to keep the price in check.

Renault already sells the Lodgy in MPV segment from 2015. Despite a competitive price, Lodgy failed to live up to the expectations. The sales are nowhere as envisioned with current sales at about 400 units per month.

That is not the problem with Renault. With the onset of compact SUVs, the MPV segment has shrunk in India. Maruti Suzuki's Ertiga under Rs 10 lakh and Toyota Innova Crysta priced over Rs 15 lakh are the only two MPVs in the market with a good number of sales. Mahindra Xylo and Datsun Go+ MPV have not been registering a good number while Honda Mobilio's stint in India was short-lived.

In such a situation, is launching an MPV model a wise decision? Renault India currently has a positive streak with the success of the Duster SUV and the Kwid hatchback.

A compact SUV is a high risk for the French carmaker at this point. Since the MPV will be based on successful Kwid platform, success is not a distant dream if it priced competitively. However, if the market is still not turned in favour for MPVs, the upcoming model will be one of the worst decision of Renault India.

Source: ACI