The Hindu Business Line : Renault-Nissan may source €300-m worth components

New Delhi, May 2 Renault-Nissan expects to source €300 million (approximately Rs 1,890 crore) worth of auto components from the domestic market for its passenger car business in Europe, over the next two years.

The move seems to echo the Chief Executive Officer, Mr Carlos Ghosn’s frequent references to India’s low-cost engineering and designing capability.

“We are working with 38 suppliers here. We have already started sourcing some components since last year. And in the next two years, we would be sourcing components worth €300 million from India,” said a Renault-India spokesperson here.

Domestic requirements

The spokesperson said that the company was looking at sourcing from India even before Renault-Nissan would begin production in the country by 2010.

“Once the production begins at our facility here, a lot of supplies would essentially go in meeting domestic requirements. We would be sourcing over the next two years to align the products according to our global requirement,” he explained.

Last year, the joint purchasing team sourced auto parts for €100 million from the domestic market. Global automobile companies such as General Motors, Volvo, Mercedes and BMW are already sourcing components from India for their overseas units.

GM has announced a target of $1 billion components by 2010 and Volvo procured components of roughly €90 million annually.

Small car project

When asked how the small car project in partnership with Bajaj was shaping up, the spokesperson said, “Informally, the work has begun. A team of 60 people from Bajaj Renault and Nissan has started working on developing the car. But the formal agreement on various intricacies is being worked out since the international and the domestic market has to be kept in mind.”

Renault with Nissan is making India a hub for its manufacturing and engineering development centre.

Its engineering centre in Chennai is expected to staff 1,500 employees. Renault-Nissan’s joint manufacturing facility near Chennai is expected to commence operations over the new two years at an investment of Rs 4,000 crore.

More Stories on : Outsourcing | Automobile Components

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Mahindra to launch gas-run tractors

Hero Electric plans to cut prices

Parsvnath to build luxury mall in New Delhi

Renault-Nissan may source €300-m worth components

PowerGrid gets Navratna status

Essar Steel consolidates presence in N. America

There’s a spoke in the wheel at emerging auto-hub Chakan

Coastal Energen plans thermal power project near Tuticorin

MRF’s new unit to help double radial tyre capacity

Berger Paints Goa plant to go on stream by June

BEML opens Shanghai sourcing base

Brand perception – Hyundai’s main worry

Skoda to drive New Superb into India next year

Mahindra sales up 56% in April

Bilcare advisory board members