MUMBAI – India is the engineering and marketing laboratory for the Renault-Nissan Alliance’s Kwid, a 5-passenger A-segment hatchback that is among the first models built on the automaker’s new CMF-A platform.
The Common Modular Family-Affordable platform generates cost savings that make the Kwid one of India’s least-expensive cars, priced from Rs300,000-Rs400,000 ($4,690-$6,250). It is the first of 22 CMF-A-based models the alliance will launch in the country over the next three years.
The alliance introduced its CFA architecture in 2013 with the all-new ’14 Nissan Rogue CUV, followed by the new Nissan Qashqai and X-Trail CUVs. Those and other CFA models are sold in developed markets, but CMF-A designates affordable vehicles destined for emerging markets such as India.
The technology divides assembly into five modules: engine, cockpit, front underbody, rear underbody and electrical or electronic architecture. Final assembly of the modules creates hundreds of possible configurations into hatchbacks, sedans, CUVs, SUVs and MPVs in any segment or price level.
“We save 20% to 30% costs on parts and 30% to 40% costs on manufacturing processes by using the new platform,” alliance CEO Carlos Ghosn says at the Kwid’s launch ceremony. “The new processes for building the Kwid on this platform have been very economical.”
The low price also reflects the fact 98% of its parts are sourced locally, providing significant tax savings.
A 0.8L 3-cyl. gasoline engine makes 55 hp and 96 lb.-ft. (130 Nm), more than enough for a car weighing only 1,477 lbs. (670 kg). Fuel efficiency is not disclosed, but Ghosn says it is the highest among any gasoline-powered alliance car sold in India. That distinction currently is held by Nissan’s subcompact Datsun Go, which achieves 46.1 mpg (5.1 L/100 km).
Kwid Inexpensive But Not 'Cheap,' Ghosn Says
“It looks good, not cheap….our basic yardsticks of fuel efficiency, price, (drivability) and design are right and we have added many other features to ensure its success,” Ghosn says of the new model.
While just 148.4 ins. (3,770 mm) long, the Kwid’s height is increased to provide more headroom and legroom. It has Bluetooth connectivity and a 7-in. (17.8-cm) touchscreen.
The Kwid is being launched in India because success in the world’s most competitive market would support expansion into global markets from China and the ASEAN region to South Africa and South America, Ghosn says. Renault-Nissan ultimately wants to export CMF-A-based vehicles to 160 countries.
Taking a bigger share of India market, however, is the alliance’s priority. Domestic deliveries fell 2.7% to 93,991 units in 2014, according to WardsAuto data.
Society of Indian Auto Manufacturers data shows exports in the year ended March 31 declined 5.5% to124,044, for roughly a 55% share of total sales.
“The alliance aims to take our local sales to 50% by next year. This will be done by doubling our dealer network to over 300,” says Nissan India President Guillaume Sicard, whose goal is to increase the alliance’s share of the Indian market from 1.8% to 5% within the next three years.
Ghosn says he envisioned a car such as the Kwid five or six years ago, but the alliance’s French and Japanese engineers said it was impossible. He responded by setting up a Technical Center in India under the leadership of Gerard Detourbet and employing 500 engineers, of whom more than 400 were Indian.
The Kwid technology and styling were designed by Japan Global Design Center, but the pioneering vehicle architecture was developed by the Indian engineers.
“It is Indian creativity and skill for frugal engineering that has made it possible,” Ghosn says. “Kwid has the Indian gene.”
