Renault’s ambitions in Mexico

Many don’t pay due attention to it, but the fact is that Renault’s performance in Mexico over the past year is a case that deserves more care than it has been given. Furthermore, in the not too distant future, its importance should grow in such a way that it will be difficult to go almost unnoticed as it is now. With total sales of 38,596 units, the brand’s share reached an all-time high of 3.3%. Never have so many Mexicans put a Renault in their garages as now. And wow, it seemed difficult to match the moment in which the Frenchman Olivier Murguet was in charge of the brand in the country and then in Latin America, but the Mexican Magdalena López, President and CEO of Renault Mexico, is achieving it, with the help and supervision by Luiz Fernando Pedrucci, Vice President and CEO of Renault Latin America.

We recently had the opportunity to have a chat with both of them, along with Fabrice Combolive, global CEO of the Renault brand, at the brand’s offices in the Mexican capital. In it, it became clear to me that the corporation, today led by the Italian Luca di Meo, sees Mexico not only with good eyes, but as a great investment opportunity.

Traditionally, when a brand decides to invest in Mexico, it does so thinking of exporting to the United States, but Renault has already produced twice on national soil, without sending that production to its northern neighbor. The first was with the Scénic, at CIVAC, Cuernavaca, which was the first car produced jointly by the Renault-Nissan Alliance at the end of the 90s. Later, the Clio was produced in Aguascalientes, where once once more a vehicle will be manufactured that It will come out of there with the Renault logo on its grill. Despite the questions, none of the executives said which will be the next Renault to be manufactured in Mexico, which obviously leaves us all the task of speculating.

In Brazil, for example, Renault is already planning to raise the level of its range of products. Sandero and Stepway are going to be replaced by a different SUV, larger than them but smaller than Duster and, it is said, more equipped and sophisticated.

Two among the best 15

Captur, which never really managed to win over the Latin American public, must also disappear. Of the current low-end Renault in Latin America, only Kwid should be kept, due to his great success. In fact, Cambolive made it clear that Renault’s objective in Mexico at this time is not to dramatically increase its market share, but to have one or two cars among the 10 or 15 best sellers in the country, as a formula to solidify the brand in the mind of the consumer and improve the level of resale of their products.

Of course it is not said, but personally I bet because one of them is the Kwid, which fits perfectly well in a market with economic deprivations. Kwid, in fact, will have the e-Tech version launched in Mexico next June.

What would the other product be? Perhaps the future model manufactured in Aguascalientes. Without mentioning that he was referring to that model that will be made here, Cambolive made clear the importance of the C segment for the brand. Among the current Renault there are two that fit there: Arkana and Austral. But it is difficult for us to have products equal to those of Europe here. The future Brazilian SUV, for example, is smaller than the Austral, but since Mexico and Brazil obey different strategies within the brand (of all brands, in fact), perhaps a vehicle made in Mexican territory might have as its objective be sold in the United States, either as Renault or as Nissan.

Another important point that was discussed was the subject of the electrification of the brand’s products. As the speed of adoption of electric vehicles is much higher in Europe than in our region, the massive sale of vehicles that move exclusively with electric power should not happen for now, although there will be Kwid, Kangoo and Master, for example. The door through which Renault has not yet entered at this time is that of hybrids, but it is a real alternative for the near future of the French brand in the country.

Yes, Renault has grown a lot in Mexico and it will grow more, but under the command of Magda López it will go through a transformation that will make it more solid than it ever was.

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