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According to the "Wall Street Journal" report, in order to purchase more low-cost auto parts from India, Renault plans to build a second auto parts export center.
In an interview with the Wall Street Journal, Reynolds India’s general manager Marc Nassif said that the company plans to open a new component export center in Chennai, a port city in southern India. The location of Chennai as a new center was due to the gradual increase in the number of suppliers in the region.
As the cost of parts and components production in Indian factories is lower than those in Western Europe and the United States, car companies like General Motors, Ford, Honda and Toyota have all stepped up the procurement of spare parts for India in order to achieve the goal of cost reduction and competitiveness enhancement. Provide support for their respective global operations.
Renault currently has a component export center in Talegaon, near Pune, which was established in 2007 and purchases a large number of components from local companies each year. Marc Nassif said that Renault exports value of parts from India up to 90 million to 128 million U.S. dollars per year. These parts are delivered to the Renault-Nissan Alliance's plants around the world through the Talegaon Export Center.