While Maruti Alto800 is priced between Rs 2.83 lakh and Rs 3.4 lakh, Hyundai Eon is priced between Rs 3.09 lakh and Rs 4.22 lakh (ex-showroom Delhi).
Ghosn said one has to compare Kwid with competitors "for its potential" and the new car from Renault will be priced "between Rs 3 lakh and Rs 4 lakh and will be launched in the market around the festive season in September-November".
Expressing confidence of Kwid doing well in India, Ghosn said, at present, the products available in the entry-level segment offer either affordability or attractiveness or innovation, but the Kwid will offer all the three attributes.
Developed on Renault-Nissan Alliance's global CMF-A platform, Ghosn said it was a combined effort from engineers in France, Japan and India.
"We are marrying Indian skills with French and Japanese skills," he said, adding it was important for the Renault-Nissan Alliance to develop the platform in India.
Highlighting the significance of the Indian market, Ghosn said: "India is one of the the highest growth potential markets for the next five years. India and China are the only two markets with certain size with 6 per cent plus growth potential per year."
"...in the next four-five years India can be the fourth
largest market in the world after China, United States and Japan. Now is the time to develop...we are learning our own way and hopefully the success of Kwid will show you that we have learned a lot from Indian market."
The Kwid will have 98 percent localisation, he said,
while adding that it could be exported to neighbouring countries only, as shipping to other emerging markets such as Latin America will not be cost effective.
"We are using the Chennai as a hub for the region without any doubt. For the region like South East Asia, countries surrounding India and maybe we export to other countries in limited quantities. Success of this car is based on heavy localisation. I don't think you can ship this car to South America. If you want to sell this car in South America you have to produce it locally," Ghosn said.
Previously, Renault's presence in the Indian hatchback segment was limited with Pulse with a starting price of Rs 5.03 lakh (ex-showroom Delhi). The company sells six models in India, including the popular SUV duster and newly launched MPV
Lodgy.
At Davos last year, Carlos Ghosn had said Renault-Nissan Alliance was looking to have 10 per cent market share. In the past, the Alliance had tried to form a partnership with Bajaj Auto for a low-cost car but didn't materialise.
The Alliance has a plant in Chennai where they have
invested Rs 4,500 crore with an initial annual production capacity of four lakh, which can be scaled up to 4.8 lakh.
The plant exports to over 100 countries, making Nissan the third biggest exporter of cars from India. The Alliance employs more than 15,000 people in India.
