Renault Plans 2nd Center in India for Parts Exports

www.chinaspv.com: Renault SA plans to open a second center in India for exporting auto parts as it seeks to expand sourcing of low-cost components from the South Asian country for its operations globally.

It plans to open the new center in the southern port city of Chennai, Marc Nassif, managing director of Renault's unit in India, told The Wall Street Journal recently.

The French auto maker's plans to boost exports of auto parts from India mirror those of companies such as General Motors Co., Ford Motor Co., Honda Motor Co. and Toyota Motor Corp. which are increasingly buying components from India for their global operations. Parts produced in India cost less than those made in Western Europe and the U.S., allowing auto makers to cut production costs amid intense competition.

Renault established in 2007 its current exports center for auto parts at Talegaon near the western Indian city of Pune. The facility is part of its so-called International Parts Center network, which sources parts in large volumes from local companies. These parts are then used by the manufacturing plants of the Renault-Nissan Alliance world-wide.

Renault exports parts valued at 70 million euros to 100 million euros ($90 million to $128 million) from India each year, Mr. Nassif said.

The company plans to open the new center in Chennai because the number of its suppliers from that region is growing, he said. "We will soon start shipping from Chennai."

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