Mahindra Renault, the new joint venture between M&M and French carmaker Renault will use India as a hub for exporting the Logan to the other countries in the sub-continent as well as other right-hand drive markets.
Renault is also exploring the option of sourcing components from India, said Louis Schweitzer, chairman and CEO of the Renault Group.
"In the course of our operations in India if we find suppliers who make quality products, are competitive and have the ability to meet our demands we will explore the possibility of sourcing components from India," said Schweitzer.
The Mahindra Renault joint venture has set itself a target of selling 50,000 Logans in the first year when it makes its debut in 2007.
The Logan is a C segment car that can be likened to the Tata Indigo. The car which was fist launched in Romania will hit the roads of Russia, Morocco and Colombia in 2005 and Iran in 2006.
Schweitzer said that as of now the joint venture is meant only for manufacturing and marketing the Logan and all future plans for the JV will depend on the success of the car in the Indian market. He also refused to comment on group company Nissan's plans for the Indian market.
Schweitzer, popularly credited with internationalizing Renault will pass on the baton to Carlos Ghosn later this year.
The Logan will be produced by M&M in one its three facilities, the company will develop the right hand drive version of the car in collaboration with Renault and will also undertake the marketing and distribution of the car.
M&M may add to its existing distribution network for the venture. Renault on the other hand will help M&M market and distribute its vehicles in overseas markets where the Indian company has no presence.