Mahindra Renault JV to be restructured

Mahindra Renault Ltd., a joint venture between India’s largest utility vehicle manufacturer Mahindra & Mahindra and leading French carmaker Renault is seems to be revitalized soon as Renault India announced on Tuesday that it is planning to restructure its joint venture with M&M.

Company is researching for the options and a final decision will be taken within 30 to 45 days, Sudhir Rao, Chief Operating Officer of Renault India, said in a statement. Company is searching for various options for this MRPL (Mahindra Renault Pvt. Ltd.) joint venture as a business and Mahindra Renault Logan as a model, Mr Rao added.

Besides the renovation of Joint venture with Mahindra & Mahindra, Renault India has also announced its plans to set-up company’s own dealership network in the country, starting with establishment of 15 dealerships within 12 to 18 months and once the base will be established the company will increase its dealerships to 150 in coming 30 months, said March Nassif, Renault’s India head.

The Mahindra Renault Joint venture came into existence in year 2007 when both of the companies agreed to set-up an advanced manufacturing plant in Nashik, Maharashtra to manufacture no-frills Mahindra Renault Logan models with a capacity of 50,000 units per year.

However, Mahindra & Mahindra said in a statement that it would continue to sell through MRPL network in India which currently has 110 dealerships all across the country.

Expected new cars launches in India includes Ford Figo, Toyota Etios, Volkswagen Polo and  Tata Aria.