With an aim to cut costs, the French automaker Renault SA is planning to use Indian components at an extensive scale to bring in economies of scale at a larger level.

In fact, the company will be sourcing Indian components worth 250 million euros ($320 million) of for use overseas in 2013, compared with 75 million euros this year, said Sudhir Rao, chief operating officer of the company's Indian unit. It may be noted here that the company sourced components worth 10 million euros in the last year.

Even companies like Nissan Motor Co., Fiat SPA and Ford Motor Co. are eying Asia's thirds largest automobile market for increased sourcing of components as the costs are believed to be somewhere around 15 per cent lower as compared to the components being developed in the other parts of the developed world.

Notably, Renault is now planning to launch cars on its own in the Indian market after it broke ties with its Indian partner Mahindra & Mahindra due to the tumbling sales of its product Logan. M&M is now planning to launch a new product in its venture with a new name and a new bade by early next year.