Mahindra may stop investing in its JV with Renault

Mahindra & Mahindra (M&M), the largest car maker in India may stop investing in its joint venture (JV) with Renault. If the company takes this decision then the majority stake and management control will switch to Renault's side. In future, only Renault will be investing in the joint venture which will increase its share from current 49% to a new high, as reported by a news paper.

Both Mahindra and Renault have announced that they are going to present the restructured form of their joint venture in the first week of April. Just few weeks back Renault India announced that it is planning to restructure its tie-up with Mahindra.

Mahindra-Renault Logan is the only vehicle under the company's portfolio in India. The Logan is basically an entry level sedan model which is available in the price range of Rs 5.5 to Rs 7 lakh. In last one year the sales of the Mahindra-Renault Logan has gone down to a very low figure.

According to Renault India spokesman, the company is in the final stage of discussion with Mahindra Group and it will be in position to give a joint statement very soon. Both of the companies are also in the discussion about the possibility wather Renault can use a part of the 50,000-unit Logan facility in Nashik to make other vehicles, because only 500 cars are being sold every month, leaving much of the capacity idle.

Renault India is also looking to expand its self-sufficient manufacturing facility in India with its own dealership base in the country. The company is planning to launch the Fluence and Koleos cars in India. Where the Renault Fluence is a sedan model, the Renault Koleos is an MUV vehicle which can be used as an off-roader also.