Renault India to increase localisation in three new upcoming cars

Local parts proportion could rise to 70% in 2012 models

After parting ways with Mahindra & Mahindra last year, Renault will be targeting localisation in its forthcoming launch of three models in India, reports the Financial Chronicle. The company has recently launched the Fluence sedan, and will be launching the SUV model Koleos later in 2011. By 2012, Renault India will add another three models in its portfolio, including a small hatchback and another SUV. The unit’s CEO and deputy Managing Director Sudhir Rao said localisation is currently at less than 10% for the Fluence and the proposed SUV Koleos, but it could increase to around 70% and above for the three cars being launched in 2012. He added that the pricing of the models is more market-driven rather than by localisation. The heavy localisation, however, could enable the company to save significantly on costs.