Modern CVT technology offers improved fuel efficiency and performance, but persistent consumer perceptions and price sensitivity have historically limited market penetration.
17 Feb 2025 | 4241 Views | By Sarthak Mahajan
The introduction of Renault's Kiger RXT(O) Turbo CVT at INR 9.99 lakh signals a bold bet by the French auto brand in India's automotive transmission landscape, where automatic options have historically struggled to gain widespread acceptance compared to manual transmissions.
The Indian market currently offers several automatic transmission technologies, ...
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The introduction of Renault's Kiger RXT(O) Turbo CVT at INR 9.99 lakh signals a bold bet by the French auto brand in India's automotive transmission landscape, where automatic options have historically struggled to gain widespread acceptance compared to manual transmissions.
The Indian market currently offers several automatic transmission technologies, each with distinct characteristics. Continuously Variable Transmissions (CVTs) provide seamless power delivery and optimal efficiency through infinite gear ratios. Dual-Clutch Transmissions (DCTs), favored by manufacturers like Volkswagen and Hyundai in their premium offerings, deliver quick gear changes and sporty performance but come at a higher cost. Meanwhile, traditional torque converter automatics, though smooth in operation, often face criticism for their relative inefficiency.
The limited adoption of advanced transmission technologies in India, particularly CVTs and DCTs, can be attributed to their manufacturing costs. Traditional automatic transmissions typically increase a vehicle's price by INR 1-1.5 lakh compared to manual variants, while DCTs can add even more to the cost. This price premium has historically deterred price-sensitive Indian consumers who prioritize initial purchase cost and fuel efficiency.
To address the affordability challenge, manufacturers have explored alternative solutions. Maruti Suzuki pioneered the mass-market adoption of Automated Manual Transmission (AMT) technology in India, which offers automatic gear shifting convenience at a modest premium of INR 40,000-50,000. While AMTs have gained acceptance due to their cost advantage, they are often criticized for their jerky shifting experience compared to more sophisticated transmission options.
Consumer perceptions about automatic transmissions' fuel efficiency have also influenced their adoption. Many Indian buyers believe that automatic transmissions, regardless of type, result in lower fuel economy compared to manual transmissions. While modern CVT and DCT technologies have largely addressed this concern through advanced engineering and electronic control systems, this perception persists in a market where fuel economy significantly influences purchasing decisions.
Renault's strategic pricing of the Kiger RXT(O) Turbo CVT below INR 10 lakh could mark a turning point. This price positioning makes CVT technology more accessible while pairing it with a turbocharged engine, offering a combination of performance and convenience previously unavailable at this price point. The move could catalyze other manufacturers to introduce similarly priced advanced transmission options, potentially transforming the automatic transmission landscape in India.
Industry analysts suggest that as manufacturing scales increase and technology costs decrease, more automakers might introduce competitively priced CVT and DCT options. This trend, combined with growing urban traffic congestion and rising consumer aspirations, could accelerate the adoption of automatic transmissions across different technology types.
At the same time, Renault has its task cut out as far as making a comeback in the Indian market is concerned. The brand, despite offering competitive features and pricing in the Indian market, has been hindered by a confluence of factors.
Firstly, a limited model range in recent years has restricted its ability to cater to diverse customer preferences, particularly in the popular compact sedan and SUV segments. Moreover, concerns regarding the reach and quality of after-sales service have also dented customer trust and brand loyalty.
Furthermore, Renault hasn't cultivated a distinct brand identity or aspirational value compared to established players, leading to a lack of strong brand recall. Less aggressive marketing efforts compared to competitors have also limited market penetration and visibility. Finally, the intensely competitive nature of the Indian automotive market, with established domestic and international players, poses a significant challenge for Renault to capture a larger market share.
Still, the success of Renault's initiative could signal a broader shift in consumer preferences, particularly if it demonstrates that modern automatic transmission technologies can deliver both convenience and acceptable fuel efficiency at an affordable price point. This development might mark the beginning of a significant transformation in India's automotive market, where automatic transmissions could finally transition from being premium features to mainstream options across various segments.