French auto major Renault which has just independently forayed into the Indian market with its premium mid size sedan Fluence, imported as completely knocked down unit from Turkey, is looking ahead to do more of the assembling locally by early next year to attract lower duty given the government relaxes the CKD norms.

Mr Len Curran VP sales and marketing of Renault India said that “If the government changes the taxation rule, we will breakdown the engine and gear box and assemble more of it in India by January 2012.”

However, he added that there will be necessary infrastructure in the company's facility at Chennai by the time. Renault, along with its global alliance Nissan, will make an investment Rus 4,500 crore by 2015 at the Chennai facility.

In the 2011-12 Budget the government has raised customs duty at 30% as against 10% earlier for pre-assembled engines, transmissions and gearboxes. However, Mr Curran added even after doing more after assembling, the car will remain a CKD.

(Sourced from BS)