Magdalena López
CEO
Renault México
/
View from the Top

Vehicles Do Not Generate Loyalty, Customer Experience Does

By Antonio Gozain | Fri, 05/06/2022 - 09:00

Q: How have Mexican market trends changed in recent years and how does Renault adapt its portfolio to local demand?

A: The conditions in the country are very particular and we have adapted our offering to make Renault a real mobility solution in the Mexican market. The country’s altitude, for example, represents a challenge for car engines. We had to learn from past experiences to build an established portfolio that truly adapts to the market’s needs. Owing to this, we saw continuous growth during the past five years. Adapting our products was the right decision and, today, Renault enjoys a customer satisfaction rating of 90 percent. We are implementing a customer-centric approach and we have doubled our market share. We ended 2021 with 3.5 percent of the Mexican market and our goal is to reach 5 percent.

Q: What strategy has Renault implemented to achieve these goals?

A: We focus our strategy on three pillars: SUVs, commercial vehicles and electric vehicles (EVs). Our SUVs include the Duster, Capture, Koleos and Kwid. This last vehicle is the most popular thanks to its sporty design, security, efficiency and attractive price. During the pandemic, we saw higher demand for this product because, although mobility as-a-service was popular, the need to respect social distance encouraged customers to acquire their own vehicle.

Our commercial vehicles are seeing great reception among customers. Oroch, for example, opened a new niche in the market; we are pioneers in this type of vehicle. Our Kangoo model, which has been in the market for about 10 years, was used to launch our EV offering in the commercial category. During the pandemic, we identified an opportunity for last-mile delivery vehicles, prompting the company to introduce the Kangoo Z.E. that now enjoys a great reputation.

We have long been committed to sensitizing the market to EVs. In 2015, we started commercializing the Twizy, which became popular among security forces in Guadalajara, Merida and Campeche. BBVA also acquired units and Coca-Cola used it in its commercial campaigns. Later, we launched the Zoe E-Tech Electric, now the most sold EV in the EU. Two months ago, we presented the Master Z.E. to increase our portfolio of electric commercial vehicles.

By virtue of this offering, Renault has been selected as one of the best options by leaders in the delivery market, such as DHL, Mercado Libre among other retailers’ brands. For these businesses, acquiring EVs starts as a branding tool but once they see the economic and other benefits offered by these vehicles, they consider them a real business solution. Renault Enterprises is in charge of managing these B2B relationships through a highly experienced team that identifies the mobility proposal that fits the client’s needs.

Q: How has the global context influenced Renault’s plans to expand in Mexico?

A: Fortunately, we import from different countries in Latin America, including Brazil, Argentina and Colombia. South Korea and the EU are also sources. However, we are very conservative regarding the opening of new stores. We like to ensure our dealerships see a return on investment. For this reason, Renault opens a store only if it identifies a need. For example, we opened a store in Los Cabos, Baja California Sur, after observing the large number of Kangoo units that were brought to Tijuana, Baja California, for aftersales services.

During the pandemic, we opened facilities in Tepic, Interlomas, Santa Fe, Los Cabos and Puerto Vallarta and now Renault covers over 90 percent of the country.

Q: How is Renault adapting to emerging trends and the increasing competition in the market?

A: In terms of product, the company is aligned with emerging trends regarding alternative energy sources. In terms of new market players, it is normal for companies to enter the country but we focus on our customers. Most OEMs offer good products but Renault’s differentiator is its customer experience; we have to guarantee a different experience that generates loyalty.

 

Renault Group is a French OEM with over 115 years of experience and a presence in 128 countries. The group manages five brands: Renault, Dacia, LADA, Alpine and Mobilize.

Antonio Gozain Antonio Gozain Journalist and Industry Analyst