Len Curran in Calcutta on Thursday. A Telegraph picture

Calcutta, June 2: French auto maker Renault aims to source 60 to 70 per cent of its components locally by next year when it plans to launch its India-specific hatchback.

“We would like to localise 60 to 70 per cent of our business in India. This will help us position ourselves in the market when we launch our India-specific premium hatchback next year,” said Len Curran, vice-president (sales and marketing) of Renault India, at the launch of its first car — Fluence — in the city today.

Curran also flagged off the first dealership in the east in Calcutta today.

The cost of a car gets substantially reduced if majority of its components are sourced from local vendors.

For the Fluence, which is a completely knocked-down unit, only 10 per cent of the components are local.

Curran said while the level of localisation would be a key factor in deciding the price of the proposed hatchback, most of the components for the Fluence would continue to be imported.

Renault is also planning to build a power train facility at its existing plant at Oragadam in Chennai which it shares with Japanese car maker Nissan. Curran, however, did not specify the investment.