Renault to boost component sourcing from India

French car giant Renault, after accessing success in the sourcing of car components from India, has decided to increase it to worth $100 million in the current year. Renault in alliance with its partner Nissan sources components made by Indian companies for its overseas units in the East and UK. Besides this the company is also laying a ground for its comeback in India as an independent player after it broke up with Mahindra and Mahindra. Consequently, Mahindra had to rename its sedan Mahindra Logan to Mahindra Verito.

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As per an early projection, the company is expected to roll out its sedan segment car Renault Fluence first. For this, the company is said to have set up a 4-lakh per year capacity plant at Oragadam in Chennai in association with Nissan. In all Renault proposes to launch over five cars in every segment including the all-roader Renault Koleos in the next 15-18 months time.

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Considering the Indian car market to be challenging, the French player wants to leave no stone unturned before it launches any of its cars in India. Following the strategy Renault India proposes to have 14 dealerships in India initially and would further increase it to 100 outlets by the year end, said sources.  Besides, Renault’s component sourcing from India is also said to be on the rise for its plants in Thailand, China, Japan and the UK. As per the projections, the company sourced components worth over $40 million last year and is hoping to increase it to $100 million worth parts this fiscal year ending March 2012.