Renault seeks to conquer India with budget car

Renault launched its first budget car developed specially for India on Wednesday, seeking to expand its foothold in the huge but highly competitive market.

Renault chief executive Carlos Ghosn described the Kwid as "a car for conquest" designed to deliver high-volume sales as the French auto giant tries to grow its share of the Indian market.

The Kwid, the first Renault car to have its global launch in India, will go on sale in the second half of the year priced at 300,000 rupees ($4,700).

"India is not an easy market but we ... decided to play a role on this market," he said at the launch in the southern city of Chennai -- India's car-making hub.

"This vehicle is a global car, if we make it in India, we will surely make it in all the world," he continued, adding the country could be the world's fourth-biggest car market within five years.

Renault cars currently account for around 1.5 percent of sales in India but the company aims to swiftly increase that to five percent with the Kwid and a new family car called the Lodgy.

However, it faces strong competition in the small car sector from the Indian-Japanese manufacturer Suzuki-Maruti which holds 45 percent of the market and from Korea's Hyundai. Renault went to great lengths to develop the Kwid in India to keep costs down.