Renault: We want to outsell Honda

Renault Australia has announced that it is under pressure to treble sales Down Under from today's 1 per cent to more than 3.5 per cent in a bid to match the French car-maker’s global performance in other markets.

Speaking to motoring.com.au following the Paris motor show, Gilles Normand, Renault’s regional chairman of Asia Pacific said he was "reasonably happy" with the Renault Australia's sales performance this year when it expects to sell 12,000, despite the late arrival of the Megane hatch.

"We have to remain humble", Normand said.

"Five years ago we were very far away from where we are now. Today we are happy because we are growing the brand. The dealer network is happy and our customers are happy.

"But if I look at the glass half full then there is a lot of work to do. We are still at a little less than one per cent market share. Globally we have a 3.5 per cent global market share. Ideally we want to be around 3.5 per cent market share in every market that we operate in", said the Asia Pacific sales boss.

If the French car-maker grabs 3.5 per cent of the Australian car market it means it will have to sell more than 40,000 vehicles, overtaking rivals like Honda in the process.

To meet its sales target Normand says the new Megane and Koleos will play a key role and are "already achieving good results" with the range-topping Intens version of the SUV already sold-out.

"The Koleos is meeting all our expectations. It is priced very competitively in the market. We're asking for more vehicles because demand is outstripping supply" Said Normand.

Key to meeting its ambitious sales target is the arrival of the Alaskan one-tonne ute but, according to Australasia sales boss, the Renault utility is still not confirmed.

"I am convinced the Alaskan is very important for Australia and we are currently developing it to make sure it is the right product, but nothing is confirmed yet.”

What Renault isn't prepared to do is flood the market with new model lines and, in the process, pressurise its recently revived dealer network into unrealistic sales targets, says Justin Hocevar, Renault Australia’s Managing Director.

"Opening up every product opportunity doesn't make the best commercial sense. We have a burgeoning dealer next we need to build their skills around the brand. We don't want to go crashing in with a big front-end sales push. We have to build our credibility around the back end of the brand.

"We know traditionally, French auto brands haven't had a great understanding, presence and therefore degree of trust in the Australian market”, said the Renault exec.

Hocevar is also concerned too many products will jeopardise what he describes as the “really strong cost of ownership” now offered by all the models in the Renault line-up.

"The long warranty we have put in place and residual value management are all the things we've had to do to establish ourselves. We can't maintain all of that when we’re just focused with pushing new products into the market".

That said, Hocevar is says Renault Australia is considering expanding its offering like the seven-seat Grand Scenic.

Renault’s Australian MD also let slip that the French car-maker had imported a Zoe to assess its sales potential but Hocevar was quick to deny any concrete plans to import the pure-electric hatch until incentives are in place.

That’s because over a typical eight-year ownership, currently in Australia, a small internal combustion-powered car over still offers a lower cost of ownership.

Renault Australia says it will continue to lobby the government to introduce a "friendly eco-system" for pure-electric vehicles that includes more recharging facilities and personal tax breaks.