French auto maker, Renault India has managed to reduce its losses by more than 86% at Rs 160 crore , aided by it’s recent launches of SUV Triber and the Kiger. Renault reported it’s revenues for FY 2020-21 as Rs 5811 crore ,a 16% fall since the last financial year. The company’s total expense for the fiscal stood at Rs 5972 crore , according to its filing with the Ministry of Corporate Affairs, shared with ET by business research platform Tofler.
The Duster SUV maker is looking to reduce cost and targets profitability in this market. Renault has set a target of breaking into profits in 2022.
In FY20, while Renault India’s revenue increased 11.68% to Rs 6,920 crore, its loss almost quadrupled to Rs 1,136 crore. The company is working on cutting cost at all levels to swing the fortunes in the next 18 months.
Renault India managing director Venkataram Mamillapalle declined to comment on financials.
Renault India saw volumes grow in fiscal 2021, selling 92,268 units with a market share of 3.4%. As it prioritises the domestic market, there are plans to push export volumes of the Triber to neighbouring markets.
Experts say trying to get a larger pie of the value conscious low margin mass market, has taken a toll on its financials. Dealer profitability and eventually to breakeven and build up scale will continue to be focus area for the company.