Renault South Africa (SA) has a new MD.

Son of former Imperial Holdings CEO Bill Lynch, Niall Lynch, will take over the reins at the French brand, with current CEO Susumu Uchikoshi poised to take up a senior position at Nissan – Renault’s alliance partner – as the Japanese company faces a global management restructure.

The local boardroom changes follow a share shake-up in December, when Imperial Holdings secured a 60% share, up from 49%, of the Renault business in South Africa. French parent company Renault retains the balance.

Lynch, who holds an MBA, has been franchise director of Imperial Ford and Mazda, Jaguar and Land Rover and Imperial Honda. Prior to this, he was investor relations and strategy director at Eqstra. 

He joins Renault SA at a time when the once struggling brand has staged a comeback and achieved 5% retail passenger car market share in the last quarter of 2013.

The company sold just over 13 000 units in 2013, says Lynch, which is 18.5% up on 2012 numbers – this while the local market grew 3.2% in 2013.

Renault SA marketing and communications VP Fabien Payzan largely attributes “this very nice growth” to the introduction of the new Clio hatchback, as well as the Duster sports-utility vehicle (SUV).

“We have become a medium-sized player in the South African market. It gives us a strong base to grow from, and the partnership is working quite well.”

Payzan believes the new ownership model provides “the best of both worlds”, as Renault requires local knowledge to grow the brand, leaving it to focus on product and marketing strategies.

What does it mean for local manufacturing, though? Imperial has never looked favourably at local vehicle assembly, and the Renault Sandero is assembled at the Nissan plant, in Rosslyn, near Pretoria.

Payzan says assembly is set to continue in the short term.

However, is it well known that the new Sandero will be launched in the not too distant future, and what will happen then?

Payzan says the new Sandero will be sourced from Romania, to avoid delaying its introduction, but that “a local supply study was under way”.

If it makes financial sense to assemble the new model in South Africa, production will continue.

“Renault is responsible for getting cars into South Africa at the best price possible, so that is where we start,” notes Payzan.

“We have to think of how we can use the [local] Nissan plant to the global benefit of the alliance,” adds Uchikoshi.

While the entry-level Sandero has held steady for Renault SA at sales of roughly 400 to 500 units a month, the new Clio IV notched up 4 000 unit sales in just eight months – ten times that of its predecessor, the Clio III.

“We thought we would sell 280 units a month, which left us in short supply,” says Payzan. “We have now upped our forecast for 2014.”

Duster, as a new, more affordable SUV launched in September, has seen sales of 1 300 units in its first three months on the market.

Here the popularity of the diesel model upset the forecasting apple cart. Initially predicted to make up 30% of the sales mix it now makes up between 50% and 55% of Duster sales – again leaving Renault SA short on supply. However, a shipment of new vehicles is on its way from India.

With a full year of Duster and the new Clio, “we should have a good year ahead of us”, notes Payzan.

One challenge, however, will be price increases above inflation as the weakening rand continues to take its toll, he adds.

Another problem is the cannibalisation of Mégane sales by the Duster.

“Mégane is not doing well, to be honest. It is suffering from Duster, which people see as an exciting family car, offering both roominess and safety,” says Payzan.

The answer here is to place marketing emphasis on the sportiness and dynamism of the Mégane.

Another project that could one day impact local Renault sales is a project to build a bakkie.

“We are working with Renault head office to see if we can’t somehow produce a pick-up for the local and South American markets, but this is definitely not a short-term project,” notes Payzan.

Lynch says Renault is hopeful of cementing its newly gained 5% market share in 2014.

He also wants to focus on the affordability of Renault parts.

“Malcolm Kinsey’s 2013 report shows that both Sandero and [the] new Clio are very well positioned in their segments and I know that Duster parts are nicely priced too. A key focus going forward will be the affordability of spare parts for all our models in their respective segments.”

“Our commitment is that 95% of parts ordered must be delivered within 24 hours,” he adds.

While Lynch does not want to disclose specifics surrounding Renault SA’s product plan and future launches at this stage, he is forthcoming on imminent developments regarding fuel-efficient engines.

“In the wake of the success of new Clio Turbo 66 kW and Duster 1.5 dCi, be ready for a comprehensive roll-out of Renault’s fuel-efficient engines in 2014.”