Last updated: September 7, 2019
Topic: AutomotiveCars
Sample donated:

Renault: his life and work

Louis Renault was conceived on 12 February 1877 as
the fourth of Alfred and Berthe Renault’s six youngsters. His dad earned a
living for the family by delivering and offering material and catches. Louis
demonstrates an inclination for innovation at an exceptionally youthful age. In
1888 the youthful Louis, as of late turned eleven, has just introduced power in
his room! He concocted an arrangement of links, pewter battery plates and a
corrosive shower, keeping in mind the end goal to create power. Sadly, youthful
Louis can’t discover a goal in life. More terrible still, he abhors the natural
presence and he is somewhat cynically. It’s just his energy for motors that
propels him. Life is endurable for him with the hands loaded with greasing up
oil. His instruction doesn’t keep running as implied on forehand by his folks.
Yet, at last they needed to concede that skipping from school each now and then
worked out to be leeway for him. In the event that exclusive the way that he
made a battery at eleven years old, yet in addition that he shrouded himself in
a steam prepares coal delicate on the track Paris-Rouen, with a specific end
goal to find how a steam train functions.

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Renault, the world celebrated maker of lorries,
vans, transports, tractors, and autos, was established in 1899 as the ‘Société
Renault Frères’ by the Renault siblings, Louis, Marcel and Fernand. Be that as
it may, a great part of the credit for beginning the legend of Renault history
goes to Louis Renault, who was a trying individual and had effectively planned
a few auto models before joining his siblings. Truth be told, he is the
individual who manufactured the principal Renault Car, known as the ‘Renault

Well, Louis Renault was organizer of Renault. In
1877 he was conceived in Billancourt, Paris, and he made his first motorcar at
21 years old in a little carport close to his folks’ home. On Christmas Eve
Louis influenced his first show to visit and quickly after that he cited 12
orders; creation could begin. Together with two of his siblings he established
Renault-Frères. In the principal half of 1899 as of now 80 autos were
assembled. The most ideal approach to elevate your autos is to participate in
races and attempt to win, which was the situation from 1899 to 1903. Request
expanded, tragically destiny as well: in 1903 Marcel Renault slammed and was
murdered amid a race.

Creation expanded; more sorts and forms with various
motors showed up. Renault additionally presented themselves on different shows.
Adjacent to private autos they began to create taxis. In 1906 began the
generation of Lorries, transports and 4×4 vehicles. Amid WW I the French armed
force purchased numerous Renault vehicles.

Amid WW I and WW II, Renault delivered tanks, which
later on filled in as the base of tractors. The principal tractors go back to
1919 and after 1930 Renault created diesel motors as well. Renault broke speed
records routinely, and made increasingly extravagance autos, until the point
when the manufacturing plant for the best part was annihilated in WW II. Around
then they additionally provided plane motors to Caudron. It was in this war
Louis Renault was captured by the French government, blamed for coordinated
effort with the Germans, and he kicked the bucket in jail under strange

After the war the French government got the
initiative of the manufacturing plant, which consequently got the name Regie
Nationale des Usines Renault. Be that as it may, Louis Renault had, before he
kicked the bucket in 1942, effectively done the preparatory work for the making
of the 4CV. The 4CV was composed and tried covertly, and it was with this auto
that another period for Renault started. Each Renault had a name or a number as
sign of its sort. Again they contended inside arouses and races, such as, the
Monte Carlo races.

In 1977 started the Formula I enterprise. Renault
joined each race until 1986, and got a moment put in the constructor’s title of
1983. Amid this period Renault provided Lotus and Tyrell with V6 turbo motors.
From 1992 to 1997 the Renault motor was effective for Williams and Benetton; 6
times as a best on the planet. Since 2001 Renault tries to pick up the title
for constructors in Formula 1. Around 1981 the shade of the tractors changed;
from red to the present-day orange-ochre. In any case, through the way that Claas
since 2003 claims 80% of the Renault-Agriculture shares and a 100% out of 2008,
in numerous nations the Renault tractors will be sold as Claas. Just the sort
sign has survived.

Renault likewise has a lion’s share enthusiasm for
Nissan Motors They supply conveyance vans to General Motors; Midlum truck
cabines to DAF. Renault is utilizing John Deere motors for their tractors and
Mack motors are utilized for the Magnum trucks. Volvo has a larger part
enthusiasm for Renault trucks, and Renault trucks, thus, has an incredible
piece of the Finnish Sisu shares. All things considered it is a significant
story, about a brand with one objective: make a reasonable vehicle for
everybody. It is the immense decent variety of items that entrances me.


The car business is an extensive variety of
organizations and associations engaged with the plan, advancement, assembling,
advertising, and offering of engine vehicles,1 some of them are called
automakers. It is one of the world’s most essential monetary parts by income.
The car business does exclude ventures committed to the upkeep of cars
following conveyance to the end-client, for example, vehicle repair shops and
engine fuel filling stations.

The term car was made from Greek cars (self), and
Latin motivus (of movement) to speak to any type of self-controlled vehicle.
This term was proposed by Elmer Sperry


Principle article: History of the vehicle

The car business started in the 1890s with many
producers that spearheaded the horseless carriage. For a long time, the United
States drove the world in complete vehicle creation. In 1929, preceding the
Great Depression, the world had 32,028,500 cars being used, and the U.S. car
industry created more than 90% of them. Around then the U.S. had one auto for
each 4.87 persons. After World War II, the U.S. delivered around 75% of world’s
auto generation. In 1980, the U.S. was surpassed by Japan and turned into
world’s pioneer again in 1994. In 2006, Japan barely passed the U.S. underway
and held this rank until 2009, when China brought the best spot with 13.8
million units. With 19.3 million units fabricated in 2012, China practically
multiplied the U.S. creation, with 10.3 million units, while Japan was in third
place with 9.9 million units. From 1970 (140 models) more than 1998 (260
models) to 2012 (684 models), the quantity of car models in the U.S. has
developed exponentially. Wellbeing is an express that suggests to be shielded
from any hazard, risk, harm or reason for damage. In the car business, security
implies that clients, administrators or makers don’t confront any hazard or
peril originating from the engine vehicle or its extra parts. Security for the automobiles
themselves, suggests that there is no danger of harm. Security in the car
business is especially imperative and in this manner very directed. Autos and
other engine vehicles need to agree to a specific number of standards and controls,
regardless of whether nearby or universal, so as to be acknowledged available.
The standard ISO 26262, is considered as a standout amongst other practice
system for accomplishing car utilitarian safety. If there should arise an
occurrence of security issues, peril, item deformity or flawed methodology amid
the assembling of the engine vehicle, the producer can demand to return either
a cluster or the whole generation run. This system is called item review. Item
reviews occur in each industry and can be generation related or come from the
crude material. Item and operation tests and assessments at various phases of
the esteem fasten are made to maintain a strategic distance from these item
reviews by guaranteeing end-client security and wellbeing and consistence with
the car business necessities. Be that as it may, the car business is still
especially worried about item reviews, which cause impressive money related


See likewise: Automotive industry by nation

Around the globe, there were around 806 million
autos and light trucks out and about in 2007, expending more than 980 billion litres
(980,000,000 m3) of gas and diesel fuel yearly. The car is an essential method
of transportation for some created economies. The Detroit branch of Boston
Consulting Group predicts that, by 2014, 33% of world request will be in the
four BRIC markets (Brazil, Russia, India and China). In the meantime, in the
created nations, the car business has moderated down. It is additionally expected
that this pattern will proceed, particularly as the more youthful ages of
individuals (in exceptionally urbanized nations) never again need to claim an
auto any longer, and lean toward different methods of transport. Other
conceivably effective car markets are Iran and Indonesia. Emerging auto
advertises as of now purchase a bigger number of autos than built up business
sectors. As per a J.D. Power contemplate, developing markets represented 51% of
the worldwide light-vehicle deals in 2010. The examination, performed in 2010
anticipated that this pattern would accelerate. However, later reports (2012)
affirmed the inverse; to be specific that the car business was backing off even
in BRIC countries. In the United States, vehicle deals topped in 2000, at 17.8
million units

industry internationally

Insights and Facts on the Global Automotive Industry

Worldwide offers of traveller autos are gauge to hit
77.7 million vehicles in 2017. Alongside China, the United States is considered
as a real part of the biggest car markets around the world, both as far as
generation and deals. Around 6.9 million traveller autos were sold to U.S.
clients in 2016, and around four million autos were delivered here around the
same time. The United States turned into a key car showcase in the mid-1900s;
when Ford acquainted sequential construction system auto creation with
mass-produce its Model T. Today, the Ford Motor Company still positions.




Low vehicles price
Ground Clearance
Security measures (Airbag, ABS etc.)

Lacks penetration in Asian and
growing markets.
Cases of recall of cars slightly
affected brand image.



Investment friendly policies introduced by
Fast growing market.
Competitors lack of quality and high prices.
Market growth for Hybrid cars.

Political Instability



1.      Can exploit two of Pakistan’s most fundamental selling


Ø  Ground clearance:-

In Pakistan people are intense to ride high ground clearance
vehicles, as mentioned in article (4). With Renault Duster (ground clearance
car) be the first Renault car in Pakistan, it will increase the chances of


Ø  Prices:-

With low labour cost in Pakistan, they can offer low cost car
which is another big strength to have while entering a new market i.e. Renault
KIWD (economical car) can do the magic for Renault by giving tough rivalry to
Suzuki Mehran (leader of the market) in term of price and by providing little
extra in term of quality will give them competitive advantage.


2.      Pakistanis are unsatisfied by high prices and the quality of
locally produced cars, which lack airbags, anti-lock braking systems (ABS) and other features measured standard
elsewhere. By providing such features with reasonable price can be another
strong factor for strengthening their feet in new market.


1.      Despite European popularity, lacks penetration in Asian and
growing markets (6).

2.      Cases of recall of cars slightly affected brand image (6).
Renault had to recall many       cars of
different model due to some technical faults which arise the wave of negativity
against the company.


1.      The major attraction for companies such as Renault is the new
policy which allows these investors to import tax free manufacturing plant
equipment and pay fewer taxes on import of parts when assembly starts
plus various other incentives that can help new entrants in the automotive
industry to set up their operations in Pakistan. New entrants would be
able to import machinery for plants duty free. Customs duty for importing car
parts has been set at 10 per cent, while existing players will have to pay 30per
cent (2).

2.      Pakistan is a fast growing market with a 10% annual growth
rate (3). Local
car sales in the country have recorded a growth of 31% year-on-year – highest
in the last five years – and touched 179,953 units in fiscal year 2015 related
to 136,888 units in the same period previous year(1). With the
economy rising at its fastest pace in eight years, the local currency steady
against the dollar and interest rates at their lowest in 42 years, Pakistani
officials have confidence that country is once again on the radar of investors looking
for to tap into a market of nearly 200 million people (5).

Due to lack of competition in the market,
existing players charging high prices for their vehicles without providing
quality equivalent to that of price. Such markets with so many gaps can be
easily penetrated. It’s an opportunity for Renault to get in the market with
fully loaded vehicles or an lower price vehicles

Increase market demand for hybrid cars. Due
to high air pollution in Pakistan, Lahore is among top 5 most populated cities
in the world. Pakistani population is relying on the change in technology that
will help them fight this battle. So that’s why Pakistan is a potential market
for hybrid cars.


1.      Political
instability is the huge threat for any foreign investor intends to invest in
Pakistan. In past Renault drop the idea to invest in Pakistan because of their
political and economic instability, the military
has played several coups since independence and attempted others (2).

2.      Competition is an obvious threat for any business. Pakistani
market is dominated by Honda, Toyota and Suzuki (7). The market structure of
the automobile industry in Pakistan is focused. In economics term, we could say it’s an oligopoly, which is considered as imperfect competition in which
the industry is dominated by a small number of suppliers. This is because the
auto industry is very capital-intensive needing high investments and the
products are expensive. Hence the barriers to entry are high resulting in the occurrence
of limited number of suppliers (8).