French carmaker Renault plans to source €80 million worth of components this year from India to feed its overseas plants.

The French auto giant is gearing up for making a re-entry following separation from Mahindra & Mahindra.

Its first offering will be the sedan Fluence, assembled at the company's plant in Oragadam, Chennai. The facility was built in alliance with Nissan with a production capacity of 4 lakh cars a year.

According to Sudhir Rao, deputy managing director, Renault India, increased sourcing of parts for its global operations demonstrated the company's determination to make India the hub for its activities in the region.

Renault had announced plans to launch five cars over the next 18 months. Rao said the company would now launch five new models in the Indian market over the next 15 months, instead of 18 months. He added the company would have cars in every segment in 15 months.

Rao described the Indian market as challenging and added that the company's success in India was crucial.

He said the India entry was a litmus test for success and only if it succeeded in the country, some other markets would open up for it.