Renault launches India’s cheapest hatchback after Nano at Rs 2.57 lakh

India’s booming car market had slowed down a bit, thanks to the inflation. Car makers are making smart moves by introducing reasonably priced hatch backs in the market. French auto major has just launched entry level car 'Kwid' in India with introductory price starting at Rs 2.57 lakh (ex-showroom Delhi).

The hatchback, which would come in four variants and two options, is priced between Rs 2.57 lakh and Rs 3.53 lakh (ex-showroom Delhi).

"We are not launching a car but a new era. With Kwid we are launching a new benchmark for automotive industry. No car can be compared to Kwid at this point in time," said Sumit Sawhney, Renault India Operations, Country CEO and Managing Director.

Assembled at Renault’s Chennai plant, the company has taken the localisation level to 98 % in Kwid, the highest ever by an auto manufacturer in India at the onset of launch, he added.

The compact hatchback's maintenance cost would be around 19 % less than the market leader, Sawhney claimed.

"With Renault Kwid we offer our customers the best compact hatchback which has been designed and developed by Renault's global teams including India, making it a truly international car," he said.

The Kwid will take on Maruti Suzuki’s Alto and Hyundai’s Eon in the segment.

While Maruti Alto800 is priced between Rs 2.52 lakh and Rs 3.72 lakh, Hyundai Eon is priced between Rs 3.10 lakh and Rs 4.27 lakh (ex-showroom Delhi).

Developed with an investment of around Rs 3,000 crore, the SUV-shaped small car will be powered by an 800cc petrol engine. The company is looking to make India a regional hub for exporting the new car.

Kwid is powered by all-new 0.8 litre engine delivering mileage of 25.17 kmpl.

The car comes with various features including class leading ground clearance of 180 mm and a boot capacity of 300 litres with a seven-inch touchscreen Media Nav system and a digital instrument cluster, which are way too much than what its rivals offer.

India is the first market where the company has launched the hatchback. Renault plans to roll out the model across various markets globally.

Renault has set a target of cornering 5 % market share in India and the new car will play a big role in it.