French Auto Maker, Renault India, reduce cost and increase fortune in a span of 18 months
French Auto maker, Renault India, has struggled to reduce its losses by more than 86% at Rs. 160 crore, aided by its recent launches of the SUV, Triber and kiger.
French Auto maker, Renault India, has struggled to reduce its losses by more than 86% at Rs. 160 crore, aided by its recent launches of the SUV, Triber and kiger. The Renault is reports its revenues for FY 2020-21 as Rs.5811 crore, 16% fall since the previous financial year. The company's entire expenses for the fiscal year stood at nearing to Rs. 5972 crore, according to the filing with the Ministry of Corporate affairs, which was shared with ET by business research platform Tofler.
The Duster, SUV is trying to reduce its cost and target profitability in this market. Renualt has also set a target to break into profits in the year, 2022.
In FY20, while Renault India's revenue has increased by around 11.68% to Rs. 6920 crore, its loss is almost quadrupled to Rs. 1,136 crore. The company is striving on cutting costs at all levels to swing the fortunes in the next 18 months.
Renualt India, MD,Venkataram Mamillapalle has declined to comment with regards to financials.
Renault India has witnessed volume growth in the fiscal 2021, selling 2,268 units with a market share of 3.4%. As it prioritises the domestic market, there are varied plans to push the export volume of the Triber to neighbouring markets.
Experts have stated that trying to get a larger pie of value conscious low margin mass market, has definitely taken a toll on its financials. Dealer profitability as well as eventually to breakeven as well as build up scale would continue to be focus area for the company.