The French motor manufacturing giant Renault has subsidiaries all over the world. The subsidiary in India is called “Renualt India”. It is a well-known fact that India is a lucrative market for car manufacturers. There are more cars sold in India than in Europe. Renault already established its foot mark on the Indian car market. It has a good dealer network and has seen increased volumes of sales in the last few years. Keeping the future growth of market in view, Renault has announced plans to increase its focus in India, it now plans to start a warehouse in Pune. Pune in Maharashtra is fast becoming the focal point as an “auto cluster” as more and more car manufacturers like Tata Motors and Bajaj Auto shifted to outer Pune, auto part suppliers followed these vehicle manufacturing giants and many well known auto suppliers also set up shops there.
This warehouse will form a part of its IPC “network” (International Parts Center). The warehouse is situated smack in the middle of the car manufacturing center at “Talegaon MIDC, Pune.” The area of the warehouse would be nearly fifty thousand feet. Under the networking scheme Renault uses suppliers near its warehouses to supply them with parts. These “sourced parts” are then shipped to the other Renault units all over the world to manufacture vehicles by its “Alliance Overseas Manufacturing” units.
The establishment of this new warehouse would not only improve the relationship of Renault with the suppliers of parts but also strengthen its position as a large supplier of the parts on the global level. They would thus be able to supply parts cheaper. This is a smart strategy, Renault India would not only be able to supply parts cheaper but also take advantage of a “standard of quality” maintained by car parts suppliers.
Renault India already has an “IPC” in Pune since 2007 and had exported nearly 60000 parts generating Rupees Four Hundred crores in 2012. The projected figure for 2013 is seventy five thousand M3. Mr. Jean Paul from Renault said that after looking at the figures they hope to increase the sale of parts further taking into account the area of the new warehouse and its ability to generate a larger volume of trade. Renault would be able to satisfy its customers all over the world.