Renault opens parts hub in Mexico, supporting presence in South America
Renault has opened a new procurement and conditioning hub for automotive parts in Mexico, as the company strengthens its supply chain operations in South America.
The new facility will begin operations this month, according to reports in Mexico. It is expected to provide components for vehicle assembly at Renault’s existing manufacturing hubs in Argentina, Brazil and Colombia, as well as supporting domestic parts and aftersales operations.
Renault currently produces eight vehicle models in South America: the Kangoo and Kangoo ZE in Argentina; the Kardian, Kwid, Logan and Oroch in Brazil; and the Duster and Stepway in Colombia.
“Mexico has a spectacular supplier base,” Jesús Gallo, CEO of Renault México, is quoted as saying. “We have opened a new business unit set to start in October and the objective is to increase Mexican-sourced parts in the vehicles manufactured in Colombia, Brazil and Argentina – it is a new unit, it is a reality, and we will be starting the first shipments of parts for all the plants.”
Gallo alluded to this hub’s creation in an interview with Mexico’s Imagen Radio earlier this year, which has been translated into English. “This will use local suppliers to provide components to Renault plants across Latin America,” he said. “It’s a step toward building a stronger industrial and service infrastructure here.”
Advertisement
This investment coincides with Renault’s 25th anniversary in Mexico. “We currently have around 90 sales points and more than 80 service points across Mexico, covering about 85% of the country’s territory,” he explained in March. “Last year, we sold around 35,000 units, and we’re in the middle of a major product lineup renewal.”
Renault is rolling out a corporate transformation plan, which Gallo said began in 2020 in Europe and is now expanding across the Americas. “Mexico is one of the most important markets for the brand on the continent – the second-largest, after Brazil,” he noted.
Gallo described Mexico as “a very competitive market, not just because of new brands entering, but also because of strong product and commercial offerings from all sides”, but asserted that Renault is confident in its direction.
Creating regional hubs to “meet the needs of the local market while serving as a regional export platform” is a key part of Renault’s industrial strategy outside of Europe, not just in Latin America but also in Korea, India, Turkey and Morocco.
Automotive Logistics has approached Renault Group directly for comment on the hub’s opening.
