'Latecomer' Renault looks to bypass newbie mistakes

Jacques Daniel, president of Dongfeng Renault Automotive Co Ltd. Renault is not a SUV brand, the 116-year brand is also strong in other segments, we will bring more other exciting cars to Chinese customers, he said. [Provided to China Daily]

Jacques Daniel, president of Dongfeng Renault Automotive Co Ltd, has never denied the French brand was a latecomer to local production in China.

But he believes it was just the right occasion for success as Renault will avoid many of the difficulties foreign rivals experienced before.

"No doubt we are late, but not weak," said Daniel.

He points to the French company's alliance with Nissan as an example.

"Nissan was the last Japanese brand entering China, but after 12 years, it is now No 1."

Daniel said that many foreign automakers took 10 or more years to learn to avoid difficulties in the fast-growing China market. "Now we can benefit from their experiences in all aspects, and more important, from our colleagues at Nissan."

Renault and Dongfeng Motor Corp, also Nissan's Chinese partner, formed a joint venture in Wuhan, Hubei province last year and built a 7.76 billion yuan ($1.27 billion) factory, the 45th for French brand worldwide.

In the first phase, it will have the capacity to produce 150,000 vehicles and 150,000 engines a year.

"We never worry about the sales volume of locally produced Renault vehicles, but how many cars we can produce for Chinese consumers," said Daniel. "So we will soon increase the capacity to 300,000 units annually."

Though about 85 percent of the brand's current sales rely on its SUV Koleos, and the first model rolling off production line in Wuhan is also an SUV, the company reinforced its product lineup aggressively this year with more new models for other segments.

"Renault is not a SUV brand. The 116-year brand is also strong in other segments," said Daniel. "We will bring more other exciting cars to Chinese consumers."

The company launched the Megane RS, a high-performance car in September, and the new Fluence sedan at the ongoing Wuhan auto show.

"Chinese customers have good taste. We will accelerate product offerings in both imported and locally produced segments for the Renault brand as a whole," said Daniel.

Due to quality and cost considerations, Daniel told China Daily that the company will use one distribution network for both imported and local produced Renault vehicles.

In only three months starting in April, Dongfeng Renault finished the integration of Renault's imported vehicle business.

"Today we have already opened 90 dealerships and the number will jump to 150 next year. It's easy to go faster, but we want to keep a slower pace to ensure the global standard for Renault dealerships in China," he said.

He said the company will not set up any long-term strategy or target because it is more efficient to make short-term decisions according market conditions.

"It's still too early to talk about sales targets or future research and development functions. We now just want to first build up the factory and produce the first model and make it successful," said Daniel.