Shally Seth Mohile
Mumbai: Renault plans to more than double component sourcing from India to ₹400 million (about ₹4,055 crore) over the next five years, a senior executive said, as the automaker sharpens focus on making the country a key part of its global supply chain. The company currently buys ₹170 million worth of auto parts from India annually.
Renault's move to accelerate component sourcing from India tracks the French automaker issuing a profit warning last week amid weaker-than-expected June sales and headwinds in Europe. It also said it would accelerate cost-cutting measures to improve margins in the second half of this calendar year.
"Our ambition is to make India a strong sourcing hub, not only to meet global requirements but also to drive greater value for our Indian supplier ecosystem," Venkatram Mamillapalle, MD at Renault India, told ET on Wednesday. Scaling of component exports will help strengthen the company's supplier base and improve its global competitiveness, he said.
The senior Renault India executive was speaking on the sidelines of the introduction of the new Triber on Wednesday. The updated model is likely to challenge Maruti Suzuki's Ertiga and Toyota's Rumion in the compact MPV segment besides compact SUVs.
The Triber is the first of four new models Renault will be introducing over the next two years as part of its $600 million investment plan for the Indian market. The company, which has been a fringe player in the local market with less than a 1% share, is looking to reboot its Indian operations with the new model launches. Mamillapalle noted that the company is moving towards faster decision-making and tighter integration under a unified leadership structure, following a shift from the earlier multi-entity model involving Renault, Nissan, and the Alliance.
Dismissing speculation about potential collaborations with Indian automakers, he said, "There is no reason I need a partner. We have our own design, engineering, manufacturing and network. Somebody else may need my assistance - we don't need anybody's."
Bloomberg reported on July 4 that Renault is in early discussions with the JSW Group for a potential joint venture. "We are fully committed to the Indian market, and we believe the next phase of growth will be driven by scale, efficiency, and a sharper product focus," he said.
Mumbai: Renault plans to more than double component sourcing from India to ₹400 million (about ₹4,055 crore) over the next five years, a senior executive said, as the automaker sharpens focus on making the country a key part of its global supply chain. The company currently buys ₹170 million worth of auto parts from India annually.
Renault's move to accelerate component sourcing from India tracks the French automaker issuing a profit warning last week amid weaker-than-expected June sales and headwinds in Europe. It also said it would accelerate cost-cutting measures to improve margins in the second half of this calendar year.
"Our ambition is to make India a strong sourcing hub, not only to meet global requirements but also to drive greater value for our Indian supplier ecosystem," Venkatram Mamillapalle, MD at Renault India, told ET on Wednesday. Scaling of component exports will help strengthen the company's supplier base and improve its global competitiveness, he said.
The senior Renault India executive was speaking on the sidelines of the introduction of the new Triber on Wednesday. The updated model is likely to challenge Maruti Suzuki's Ertiga and Toyota's Rumion in the compact MPV segment besides compact SUVs.
The Triber is the first of four new models Renault will be introducing over the next two years as part of its $600 million investment plan for the Indian market. The company, which has been a fringe player in the local market with less than a 1% share, is looking to reboot its Indian operations with the new model launches. Mamillapalle noted that the company is moving towards faster decision-making and tighter integration under a unified leadership structure, following a shift from the earlier multi-entity model involving Renault, Nissan, and the Alliance.
Dismissing speculation about potential collaborations with Indian automakers, he said, "There is no reason I need a partner. We have our own design, engineering, manufacturing and network. Somebody else may need my assistance - we don't need anybody's."
Bloomberg reported on July 4 that Renault is in early discussions with the JSW Group for a potential joint venture. "We are fully committed to the Indian market, and we believe the next phase of growth will be driven by scale, efficiency, and a sharper product focus," he said.
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