Will Demonitisation Derail the Success of Renault in India?

Renault Car

The French car manufacturer has had a terrific year of sales in India. And it has reached extremely close to meeting its target of capturing five percent of the Indian market share. It currently holds the 4.5% of the market share and is on its way to crossing the 5% mark this year.

One thing, however, stands in the way of success for the company.

In November last year, the Indian government embarked on a demonitisation policy. For those who don’t know what it means, demonitisation is when the government strips the legal status off its currency notes.

In India, the local banknotes worth 500 and 1,000 rupees were rendered useless at the stroke of a midnight hour. The measure was carried out to prevent the misuse of Indian banknotes by terrorist outfits and stop the flow of Indian currency in the black market.

One speech by the Indian Prime Minister, and the whole system underwent several aftershocks. Every sector in the Indian economy, including the automobile industry, was affected.

Renault was no exception.

The demonitisation circus inhibited the flow of traffic to dealers when the company saw a decline in the demand of new cars. Even when a sale was completed, the purchasers delayed delivery.

The Drought for the French Grand Prix Is About To Be Over

Ferrari at Grand Prix

After ten years of silence, Formula 1 will finally be turning its head to the French soil.

It has been years since the French Grand Pix has gotten the honor of fighting in the Formula 1. After a decade long drought, it seems as if the French have finally planned to pose competition to the major players like Brazil and Germany.

A report by Europe 1 revealed that the Provence-Alpes-Cotes d’Azur region will help organize the event, among several local authorities. The contract that is to be signed will be for the period 2018-2022 including five seasons. A press conference is set to take place in the coming week where the return will officially be revealed.

The last time French GP ran was back in the year 2008, marking its 8th year of silence in 2016. It will be a decade before it gets back on its feet—in 2018.  The last French GP was hosted in Nevers by Magny-Cours. The prime reason for the closing of French GP was its poor financial strength. Things got even worse by the end of the 2008 edition which is why it had to be put to a stop.

In 2018, the Formula 1 will step on French soil with honors going to the Circuit Paul Richard as the possible venue.

Will Iran Be the Next Big Market for French Car Manufacturers?

French cars in Iran

A few years ago, a deal between Iran and a French car manufacturer would’ve been unthinkable.

Iran was an outcast, a global pariah. It was struggling under the weight of crippling economic sanctions over its nuclear program as each of its industries, including automobiles, was reaching the breaking point. However, the 2015 deal between Iran, the US, and the P5+1 States cleared the way for the lifting of economic sanctions and the resumption of trade between Iran and other states.

But now the doorways are open. Iran’s economy is on the way up. And the French car manufacturers don’t want to miss the golden opportunity.

A few days ago, Renault reached a deal with Iran’s government to establish a plant in the country with a capacity to produce 150,000 vehicles a year. The CEO of Renault-Nissan Carlos Ghosn maintains that the demand for cars in Iran could reach 2 million in 2020. Who would want to ignore such a lucrative opportunity?

This is, by no means, the first development between Iran and a French manufacturer. Renault’s rival PSA Peugeot Citroën also wants to produce 150,000 vehicles a year in the country, a figure it aims to double in 2017.

With the number of French manufacturers flocking to capture the blooming Iranian automobile market, it’s clear that the future of French automobile sales lies in Iran.

Is The Tesla Model S Safe For French Roads?

Tesla Model S

It goes from 0 to 60 in just 2.5 seconds.

Since it was introduced in June 2012, the Tesla Model S has become one of the company’s key offerings and the face of the electronic car industry. It became the first electric car to score first place in the monthly new car sales rankings anywhere in the world. By December 2015, the company had sold more than 100,000 units.

Not to mention that the car scored a perfect 5.0 on the American National Highway Traffic Safety Administration automobile safety rating.

However, questions were raised on the safety of the vehicle during the company’s latest attempt to bring the success of their vehicle to France. The company was busy promoting its Model S and Model X in Biarritz, France in its ‘Electric Road Trip’ tour where an unusual event occurred.

As some passengers and a Tesla employee were on a test drive in the Model S 90D, they heard a loud sound and the vehicle indicated a problem with the charging. Soon after they exited the vehicle, it burst into flames.

The story received widespread attention in the media and caused Tesla’s stocks to drop several points.

Although the cause of the fire is still unknown, this is by no means the first fire incident involving a Tesla Model S. In view of the numerous reported cases of a Tesla Model S catching fire, it’s a wonder how the vehicle gained such a perfect score in the safety ratings in the first place.

Europe Still Woefully Behind on Curbing Car Emissions

Talisman French Car

Almost a year after the Volkswagen emission scandal, Europe still hasn’t made sufficient progress on preventing car manufacturers from tricking emission tests rather than making actual progress on reducing the level of emissions.

This was revealed in a report presented by French authorities on Friday. After a thorough investigation of diesel cars by manufacturers – including Fiat, Ford, and France’s very own Renault – the investigators have been unable to find any evidence proving that the manufacturers haven’t performed illegal modifications.

Additionally, the report also claimed that the car manufacturers were “encouraged” by the European authorities to create cars that had the capability of polluting more than the EU limits.

Among the culprits was the Renault Talisman with a staggering difference between lab tests and real world figures. The level of toxic nitrogen oxides emitted by the vehicle in the lab results stand at 57.6mg/km whereas, in the real world, it’s somewhere around 926.1mg/km.

Will the French government take any action against Renault? Some of the French media outlets don’t think so. The Guardian reported a French business magazine as saying:

“The line is hazy between cheating and optimisation … in short, what might be barely morally defensible would be perfectly legal. The chances are pretty slim that any constructor will suffer the slightest reproach. The royal commission [which produced the report], like all its European counterparts, seems little more than a waste of time.”

Paris Car Crackdown: Good For The Environment, Bad For The Poor

French Cars In Paris

If you drive a car that was built before 1997, maybe it would be a good idea to drop the plans of visiting Paris for the holidays.

The city of love, old things, and love for old things will not tolerate vintage cars anymore. The ban on old vehicles was a part of measures implemented by the Parisian socialist mayor Anne Hidalgo. If you are in Paris, you’re not allowed to drive a car older than 1997 or a motorcycle older than 2000. Doing so can result in a penalty ranging from €35 to a staggering €450.

The goal is simple. According to the mayor, the ban will reduce the smog across the city and lead to improved traffic conditions. It’s an attempt to drastically cut emission levels for better environmental conditions.

Although designed to deliver on the environmental promise, the ban is attracting its fair share of criticism from some of the less affluent sections of the society. The measures are being perceived as highly elitist and socially unjust. The critics are speaking against the law which, in their opinion, penalizes the poor just because of their social status.

The problem is particularly critical in the suburban areas of the French capital where a lot of the city’s workers reside. Many of these workers cannot afford to buy newer vehicles and may face the brunt of enhanced environmental protection plans.