New Delhi, Jan. 16: Mahindra-Renault, a joint venture between Mahindra & Mahindra (M&M) and France’s Renault, plans to source engines from Renault’s proposed plant in Chennai for its sedan Logan.

“We will look at sourcing engines from Renault’s Chennai plant and if that does take place, the level of localisation in Logan could increase up to 80 per cent,” said Rajesh Jejurikar, managing director of Mahindra-Renault, on the sidelines of the 9th Auto Expo here.

When Logan was introduced last year, the localisation level was 52 per cent. This has increased to 56 per cent.

“In the next six months, it will go up to 60 per cent,” said Jejurikar, adding that the engines are now being imported from Spain.

Allaying fears of any impact of M&M pulling out of the proposed tripartite joint venture for the Chennai plant, he said the Mahindra-Renault-Nissan alliance would continue to produce and sell the Logan and planned to bring a seven-seater multi-purpose vehicle.

Moreover, the vehicles will be marketed in India under the Mahindra-Renault banner.

Mahindra-Renault is likely to source diesel engines from the Chennai plant as 70 per cent of the Logan’s sales is accounted for by the diesel variant .