Magda López
Renault Mexico
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Increasing Market Share Through a Broad Offering

By Alejandro Enríquez | Mon, 03/09/2020 - 07:00

Q: How has your strategy for Renault México advanced since you were appointed CEO in September 2018?

A: Over the past two years, Renault went through a stabilization phase, in which the brand dedicated its efforts to defining a clear strategy and achieve steady results while still growing. To this end, we have been strengthening our portfolio in three large segments in terms of volume: SUVs, Utility Vehicles and EVs. However, our operation is fully supported by our SUV offering.

With the arrival of Duster to Mexico in 2013, Renault has focused on having a wide range of SUVs for the Mexican market. For six years now, we have been strengthening that offering with the launch of Captur, the second phase of Koleos, Stepway and the recently launched KWID. Since 2019, we have been the brand with the broadest portfolio in all SUVs segments. Additional pillars of this strategy are the development of sustainable mobility projects, such as the supply of EVs and the repowering of light commercial vehicles, including Oroch and Kangoo.

We are also growing hand in hand with our dealerships. At Renault, we are interested in having committed business partners. We need to increase the size of their operations to help them to be more profitable and stay motivated. We are also looking to grow with the franchisees we operate by making strategic investments for about five upcoming store openings at strategically chosen locations.

Q: How would you assess Renault’s position in the Mexican market and what is the role that the company wants to play in Mexico’s mobility strategy?

A: The vehicles that we are introducing this year allow us to approach the customer who is, in many cases, looking for a vehicle that suits their lifestyle. Today, nine out of 10 clients recommend us because they feel we take care of them. Our goal is for clients to be with us throughout their entire life and one way to achieve this is to walk hand in hand with them from the beginning. That is the importance of KWID. Before this vehicle, most of our customers started with other brands, so we had to win them over at a later stage.

Q: How will Renault’s relationship with Nissan help the company strengthen its operations in Mexico?

A: The Renault-Nissan-Mitsubishi Alliance is the longest-lasting and most productive cross-cultural partnership in the automotive industry. The goal of the Alliance is to turbocharge the member companies’ growth and performance. The Alliance 2022 strategy is based on the use of common platforms for the production of 9 million units. The plan will also extend to the use of common powertrains for 75 percent of our offering.

To face the challenges of the automotive industry, Groupe Renault has visualized the development of its products and strategy in four fundamental pillars: electric, connected, autonomous and shared vehicles. A major expansion in shared EV technologies is planned, along with the development and implementation of advanced autonomous drive systems, vehicle connectivity and new mobility services.

Q: With SUVs and premium vehicles as the only growing vehicle segments, how do you expect the market to react to Koleos Minuit, Arkana and other SUVs in Renault’s Mexico lineup?

A: We are determined to lead the SUV market by having the most complete offering in the segment. The SUV market withstood the sales slump as the segment evolves and attracts more customers. Our vehicles incorporate more high-end technology, such as the Media Evolution infotainment system. Renault has always been at the forefront of connectivity. All our models across Latin America incorporate multimedia systems with services that go beyond the essential integrated GPS or navigation with preloaded maps. Starting in 2019, Renault Koleos equipped Smartphone Replication, allowing drivers to replicate the content of their smartphone on the screen of their vehicle.

Q: What opportunities did Renault México identify that prompted the company to introduce the Oroch pickup truck?

A: Renault Oroch is the result of the company's vision and commitment to the Mexican market. We found a great opportunity due to our position and inheritance in the range of SUVs by combining two strengths from different segments: the utility of a pickup and the comfort of an SUV.

The design, equipment and mechanics of Oroch are a huge differentiator compared to the rest of the pickup market. This vehicle opened a new segment: the first double cabin pickup with automatic transmission. Its main strength is duality: a pick-up with 650kg cargo capacity, ideal for recreational activities or light work, as well as robustness and an excellent height from floor to chassis.

Alejandro Enríquez Alejandro Enríquez Journalist and Industry Analyst