Renault to continue its JV with Mahindra

Published On Mar 18, 2010 07:16 AM By Ritesh

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Renault, France based car manufacturer today announced that it has no plans of ending its JV (Joint Venture) with its Indian partner Mahindra & Mahindra. The company will announce a restructured JV pact with Mahindra by the first week of April this year.

Mahindra-Renault currently sell the only JV vehicle, Mahindra Renault Logan in India, which is struggling to make its mark in India with lowering sales in the country. The company managed to sell only 4,981 units in the first 10 months of this fiscal, accounted for a dip of 60.03 per cent as compared to the same period of last year.

The Mahindra-Renault JV was going through a rough phase as there were some differences related to basic design of Logan model but few days back Renault India has announced that it is planning to restructure its JV with Mahindra.

Carlos Ghosn, Chairman and Chief Executive Officer, Renault India, said, We are discussing (with M&M) how to reposition the car and how to simplify the organization and it looks like we need to be more nimble and little fast with the market.

Renault India is also working on its plans of launching an ULC (ultra low cost) car in the country with its joint venture partners Nissan
and Bajaj by year 2012. This is the first time the two and three wheeler maker Bajaj is going to launch a four wheeler in India.

Mr Ghosn, also added that the Renault Logan model will remain in market and company has no plans of discontinuing it in near future. He
added that, Consumers will enjoy the product and continue to enjoy the services around the product and this is something we agree without any doubt with our partners. We will continue to work to make Logan
competitive.