Renault restrategizing its Indian partnership

Carlos Ghosn the head of the Mahindra Renault and Nissan said today that he is keen to continue with just one among its Indian partners like Mahindra & Mahindra,  Bajaj Auto and Ashok Leyland. The first venture is with Mahindra and Mahindra in which Mahindra Renault has 49% of the venture. In this venture the company makes Entry level Sedan model Mahindra Logan. Mahindra Renault is also in process with Bajaj Auto and Nissan group for making a small car model in India though no official announcement has been made in this regard so far. In Tokyo Motor Show Ghosn further elaborated that in the case of no conclusion they can think about a new product with a new partner in India. He was talking to the press Trust of India in Tokyo Motor Show. “I am not saying we will, I am saying we can. I don’t want anybody to be surprised. We have three partners (in India) today. Our intention is to continue with the three partners, but if it is not possible, I can tell you that we need at least one,” Ghosn said.

In response to the query on weather Mahindra Renault was unhappy with the dismal performance of its joint venture vehicle Mahindra Renault Logan with Mahindra and Mahindra he said that “It is a matter of concern. Every time your sales go down on any model, not only in India, we always check why. We are going to try for some more time. He further elaborated that If it does not work then we will go with a second car, probably with a different partner. We are in India to stay.

Just reverse to the expectation the Mahindra Renault Logan model is registering a steep fall in its sales in India. In the month of September the company just manage to sell 510 units compare to 1752 units in the same period of last year. In the first two quarters the company just manage to sell 2901 units of Logan compare to 9217 units in the same period of last year.

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