Mahindra recalls top executives from its JV with renault

Mahindra & Mahindra, India's largest SUV manufacturer which has a joint venture with French car maker Renault is seems to be backing out from this joint venture as it has started to recall some of its top executives from the joint venture. Just last month Renault India intended to restructure its joint venture with Mahindra & Mahindra as the joint venture vehicle Mahindra Renault Logan is not performing as per the expectations. Renault has also announced that it is setting up its own distribution network in India to support its future products here. Recently three top executives of Mahindra & Mahindra left the JV as this joint venture is on the verge of separation. Where Nalin Mehta, the CEO of Mahindra Renault has been appointed as the new chief operating officer of the Mahindra Nevistar, Jyoti Malhotra, the head of sales, and K Ravi, who was in charge of services, have also returned to the parent group.

On the other hand M&M's spokesman said that it was the company's policy to reappoint its key managers in different parts of the group. “In any scaled down activity, a realignment of business operations is imperative. it’s part of the M&M policy to look at frequent job rotations within the company and it’s part of the career planning.”

M&M is seems to be unhappy with MRPL (Mahindra Renault Private Limited) as the company wants a greater say in engineering decisions in this JV, which the Renault is unwilling to accept. Mahindra Renault, a 51:49 joint venture between the two partners, is finding it tough to sell its cars in large numbers due to uncompetitive pricing.