As a high local content translates into lower costs, the company said the price tag on the car, which would hit the market in the first half of next year, would be "very attractive". The right-hand drive Logan is priced at Euro 7,000-10,000 (approximately Rs 4.2-6 lakh) in France.
"The quality of Indian parts manufacturers and the presence of a number of international suppliers already established in the country have allowed a rate of localisation of 50 per cent from the beginning of the project, and we will be working to further extend this to a minimum of 60 per cent," Patrick Pelata, executive vice-president of Renault, said.
Without disclosing the exact price range, he said Logan would be "the perfect fit for the Indian car market", which grew 69 per cent between 2001 and 2006 and clocked sales of 4,13,000 vehicles in the first quarter of this year.
Mahindra Renault is a joint venture between Renault of France and India's Mahindra & Mahindra. Mahindra holds 51 per cent of the equity in the joint venture, while Renault has the rest.
The initial investment in the joint venture, which has set itself a sales target of 50,000 cars a year, is pegged at Euro 25 million (Rs 700 crore).
Pelata said the joint venture was part of the euro 41 billion company's (Renault) focus on Asia.
Rajesh Jejurikar, managing director, Mahindra Renault, said the production schedule was "on the dot". In fact, the trial production started this month, and 20 vehicle bodies and vehicles have already been produced at the Nashik plant.
The first phase of road trials was also carried out, and the final confirmation tests are scheduled in the country from the next month.
The MD said the company would introduce derivatives of the proposed sedan in the long run.
The correspondent's trip was sponsored by Mahindra Renault.
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