Renault India mulls localization, of up to 70%

Localization appears to be the hottest thing in the Indian auto Market currently, which actually means that the car manufacturers will lower the costs and make their products much more economical and reasonably priced for the Indian buyers. Earlier too, Indian buyers use to reject numerous variants of cars, just because of their high price. Take an example of Honda Jazz, which actually got some stunning features, but because of being pricey; it is still struggling to stand stable in the Indian auto market. At present, Renault India who recently launched its brand new sedan, Renault Fluence, is aspiring high to localize almost all its car variants up to 70%.

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Now, let’s talk about what exactly is the meaning of localization. Localization is referred to as sourcing the automobile elements and machinery parts locally along with keeping the top-notch quality level undamaged. Like in case of Renault Fluence and Renault Koleos, both have around 10% of local component. However, both the above mentioned cars are manufactured at the Oragadam plant, which belongs to Renault India. Renault cannot achieve the appreciation of the Indian automobile buyers just by lowering its car models prices, but it has to make sure that the buyers in India also get admittance to reasonably priced spare parts, which will actually make their car cost less in the long run.

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Therefore, it is expected from Renault India to manufacture its car models with high localization, which will benefit both, the company and the people who will get employed in the manufacturing process in the country.

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