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Renault will increase massively parts deliveries from India to plants in Romania, Turkey and South Africa to reduce costs

de Vlad Barza, transl/adapt. C.B.     HotNews.ro
Marţi, 11 mai 2010, 13:27 English | Business

Renault Group aims to deliver overseas parts worth of 250 million euros, produced in India, in 2013. Last year, it exported machine parts worth of 10 million euros. The new plan wants to see production costs cut, Renault India head said quoted by Bloomberg. The group's plants in Romania, Turkey and South Africa will use an increasing number of parts produced in India, which are sold by 15% less on average.

This year, Renault will buy parts worth of 75 million euros from Indian suppliers for export, but in 2013, the value of this type of transaction aims to hit 250 million euros, Renault India chief Sudhir Rao says. The parts will be used to put together cars in plans such as the ones in Romania, Turkey and South Africa. He says the real advantages are the costs: the parts produced in India are 15% cheaper on average.

Plus, Renault wants to have good relationships with Indian suppliers because he's got big plans for India: he wants to launch Fluence sedan next year and Koleos SUV and other three new models by 2013. Last month, Renault broke the partnership with local producer Mahindra, with whom he had been working for a few years on the Logan, but recorded low sales. The French decided to join the market on their own and want to sell up to 60,000 cars in 2013.

Producers like Ford, Fiat and Nissan have announced, too, that they are were going to use overseas parts produced in India, to take advantage of the low prices. A series of producers chose to go to India for cars that will later be exported to Europe. The low costs make their strategy profitable.
























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