Provost says SM series key in China

BEIJING ― The SM sedan series of Renault Samsung Motors is expected to play a significant role in the its parent Renault Group’s project to expand its presence in China.

Renault Samsung chief executive Francois Provost stressed that the consumer preferences of the Chinese are quite similar to those of Koreans.

His remarks came right after France-based Renault Group unveiled the Talisman, a luxury sedan dubbed the SM7 in Korea, during the 2012 Beijing International Automotive Exhibition ― also called Auto China 2012 ― on Monday.

“Chinese consumers are close to Korean consumers in many aspects,” Provost told a news conference.

Though the CEO declined to comment on the possibility of production of Renault Samsung vehicles such as the SM3, SM5, SM7 and QM5 in China as well as in Korea, he mentioned the likelihood of simultaneous manufacturing in China in several years.

The possibility will be feasible when the group and its Korean unit successfully attract a certain proportion of Chinese consumers, he said.

He cited Renault Samsung’s own “designs, research & development and manufacturing facilities” for competitive factors in advancing to the world’s largest automobile market.

Provost said he expects the French group will focus more on the Asian market as the Chinese market is growing rapidly.

“Renault will produce more vehicles and put more investments here.”

Accordingly, Renault Samsung will actively participate in the group’s development of the Chinese market, he said.

While Renault Samsung’s export targets had been Russia and the Middle East, it has recently been targeting China and Europe under the initiative of the French headquarters.

China has been the world’s largest automobile market for three consecutive years. About 18.5 million units were sold in the market in 2011. Market observers predict automobile sales in the Asian superpower will come to 20 million units this year.

Asked about strategies to overcome the lackluster sales in Korea, he said, “We have good products. (Now) our priority is to improve price competitiveness.”

Provost had directed the Russian unit’s strategy and planning for the commercial division. He was appointed to Korea unit CEO in July 2011.

Meanwhile, Renault Samsung has been widely praised for not only its contribution to the economy but its role in improving education, the environment and traffic safety in the Korean market.

The company’s social contribution projects aimed at children come in two main forms. Since 2005, the company has been collaborating with the non-profit organization Safe Kids Korea to educate young children about road safety.

The company also has been conducting the “eco Action” campaign to encourage motorists to adopt more environmentally-friendly driving habits, and to reduce the amount of carbon dioxide emitted during the manufacturing process.

By Kim Yon-se, Korea Herald correspondent
(kys@heraldcorp.com)