Renault Loves India
A couple of weeks ago, I wrote about how the world largest “ democracy” is being built up to a global small car hub. It seems the car world has even bigger plans for the Asian tiger cub. Business Week reports that Renault is planning to double the number of parts it gets from India. Sudhir Rao, COO of Renault’s India unit says that Renault will buy about €250m ($317m) worth of parts from the Indian subsidiary. Renault isn’t the only company that is looking to India for cost savings. Naturally, where Renault goes, Nissan follows. But Fiat and Ford are also interesting in using Indian parts.
Renault’s push for expanding their Indian parts may also have something to with Renault’s big push into India after their partnership with Mahindra dissolved. They are going to introduce a new sedan called the “Fluence”, the Koleos and three other models. To support this, Renault, along with Nissan, is building a new factory in Chennai and establishing its own dealer network. Mr Rao is fully aware of the mammoth task in front of them. “We have no illusion about what it takes in this market….the established players are very strong.” he said and he isn’t kidding.
Maruti Suzuki accounts for half of all the sales in India. Hyundai and Volkswagen are getting stronger by the day. Think they’re going to give up their market share without a fight? Let’s hope not. I make (some) money writing about stuff like this!
For Fiat it shouldn't be that hard... they already have a partnership or agreement with Tata.
On the democracy part: They got like caste system and weird cultural crap over there. I thought it was all in the past but my friend had to go through this cultural sensitivity crap cause his company was outsourcing some of their codes over there. The powerpoint went through random stuff such as certain part of India are looked down upon and not to talked to because they're below. Yeah cheap labor is great but their infrastructure is crappy and they got Pakistan terrorists and regional terrorists randomly bombing them. Didn't they killed a Tata CEO manager cause the company wanted to move a factory? Shrug, money is money I guess. I ain't hating on India or anything but they got a lot of stuffs to fix.
^^ That's a very misinformed and stereotypical comment. At least research the facts before coming up with rants.