Showing posts with label Renault. Show all posts
Showing posts with label Renault. Show all posts

Mahindra and Renault split, Logan to be continued in India!

Logan - www.motoroids.com

It was very much evident that Mahindra and Renault weren’t that much happy with their joint venture. The product of their joint venture christened Mahindra Renault Logan did not manage to return high sales figures after which both the firms entered into blame game. However, there were speculations that the firms had left their differences aside and had planned to launch a small car version of the Logan. But, as a final step, the firms have decided to go their own ways. Mahindra & Mahindra has bought 49% stakes owned by Renault in the partnership and it will be owned as a subsidiary of M&M. The firm will however, not discontinue the production of Logan in India and a few overseas markets.

The earlier speculations about the car becoming a small car have however now proved to be true. The car will be a shortened version of the Logan in order to avail excise duty benefits which are available for cars which are up to or less than 4m in length. There is no confirmed news regarding the continual of the original Logan model though. According to various sources, M&M will also launch a MUV based on the shortened version of the Logan.

A part of the sum paid in order to buy a Logan will be delivered to Renault in form of loyalty till the end of this year. The car will sell with the Renault badge too. However, this will not continue from next year after which the car will be available with the M&M badge. There are speculations which indicate that once the car will be sold under the M&M badge, the car may also be renamed.

Renault to go solo

The equal partnership between French Auto major Renault and India's Mahindra & Mahindra is all set to get modified and the change may result in either an exit or in one of the players ending up with a token stake. The Indian unit of French carmaker Renault announced on Tuesday that it would set up an independent distribution network in the country.

This announcement would work out with either Renault buying out Mahindra's 51 percent stake in the joint venture or Mahindra buying out Renault's 49 percent stake. The other option in pipelines could be Renault having a majority stake, with Mahindra holding a minimal share and Logan and its variants being manufactured out of Nashik on a contract basis.
Renault, at the Auto Expo held in New Delhi last month had said that it would introduce several cars in the country within 18- 24 months and a full range in 48 months. The company also announced its plans of launching the Fluence and the Koleos models in 2011, both of which will be manufactured at its upcoming facility in Southern India.