Renault is planning to make India the hub for emerging market products after the success of Kwid in South Africa and Latin America, Mint has reported. The company also plans to source 95 per cent of the parts for its future models from local parts suppliers. A senior executive gave out this information at the Paris Motor Show.
“With the emerging market products like Kwid being highly acceptable in Africa and Latin America, it is clear that these markets are very sensitive about price and cost of ownership,” Sumit Sawhney, managing director of Renault India Pvt. Ltd told Mint.
The company has adopted the strategy to use local parts in order to produce vehicles at a competitive price and double its Indian market share to 5 per cent by 2021. The company has also established two design centres in the country to develop products here.
Renault has started procuring parts from 400 Indian suppliers for manufacturing the Kwid car being exported from the country. Sumit Sawhney added that the company is in the process of expanding its vendor base and developing its portfolio. This trend will further enhance the ‘Make In India’ program of the central government.
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