After making a splash in the Indian auto industry with its Fluence, French car maker Renault aims to implement heavy localization to significantly save on costs. The company plans to launch five cars by 2012-end. Apart from Fluence, the portfolio includes an SUV, Koleos, which is anticipated to hit the roads by 2011-end; and a fleet of three more cars including another SUV and a hatchback by 2012.
“The three cars we plan to launch in India next year will be heavily localized,” commented Marc Nassif, Renault’s Managing Director in India. Elaborating further, Sudhir Rao, Chief Operating Officer and Deputy Managing Director of Renault India, quoted that the localisation currently is at less than 10 percent for the Fluence and SUV Koleos (which is all set to be launched this year). Renault aims to increase the localization up to 70% or more for the three cars which are to be launched next year. He also commented that the price of Renault is more market driven than localization, and added that heavy localization helps the company to significantly save on its costs.
Renault’s integrated manufacturing facility in Chennai, is contributing to the localization efforts. To contribute towards localization, efforts are also underway to construct a powertrain facility at company’s Chennai unit, consisting of multiple components including the engine, transmission, driveshaft and other internal workings of the engine. Opting not to discuss the details of the powertrain facility, Rao commented, “I don’t think we have announced as to when will it come into production and the breakup of engines but it will be a combination of petrol and diesel.”
