Auto suppliers from India see pick up in exports .

Renault India's car roll out plan may have been delayed but its global outsourcing plans are going full steam lifting spirits of export-hit suppliers.

French automaker Renault along with its Japanese alliance partner Nissan plans to export components worth 250 million euros over the next three years.

Experts say the components manufactured in India are good 15-20 per cent cost effective than other countries. In fact, Renault Nissan saved 1 billion euros in revenues in 2009 by sourcing from countries including India and Renault Nissan CEO Carlos Ghosn has already set a target of saving 1.5 billion euros this year.

Industry experts say auto components exports are expected to cross $18-20 billion over the next three years from the current $4 billion.

As market recovers globally, almost all international majors right from Fiat, Ford, GM or even the likes of Chrysler & Mercedes Benz have seen increased outsourcing opportunity.

GM plans to source components worth $500 million by 2012; Fiat aims to source as much in the next 12-18 months.

Volkswagen has plans of exporting over a billion dollars and Ford, Crysler amongst others will see component exports of another $2.5.-3 billion.

"The exports which were flat last fiscal is expected to grow in higher double digits and all the major manufacturers are showing renewed action of sourcing out of India," said Jayant Davar, president of Automotive Component Manufacturers.

The global markets are looking better which is definitely good news to the supplier fraternity but they are also facing intense competition from Chinese suppliers.

While the overseas markets do offer a big opportunity, suppliers also know that they can’t afford to miss the India growth story.

Source : ndtv.com