Renault-Mahindra divorce on final stage

Indian manufacturer, Mahindra & Mahindra will no more hold the Renault cars in its outlets as per the divorce terms decided a year back. Renault has finally decided to operate in the world's second largest auto market individually without any collaboration with its earlier Indian partner Mahindra & Mahindra. As Renault is planning its solo operations, the Indian car maker is also planning to bring its famous Mahindra Logan with a new name and removing the diamond shaped Renault logo mounted on it.

Year 2010 marked an end to the JV - Mahindra Renault Pvt Ltd (MRPL) mainly because of the bad performance of Logan. This failure resulted in an unrest between the two partners with both of them throwing the entire blame on each other. The Indian partner purchased 49% equity in MRPL , which also brought the major control of the company.

As per the Mahindra's automotive sector president Pawan Goenka, the development of the process will happen shortly by both the companies. As per his statements, diamond shape logo of Renault will be deleted from the Mahindra dealerships which were involved in selling Mahindra Logan. For now a total of 150 dealerships are existing in the Indian auto market with this joint branding.

Mahindra & Mahindra after the separation is to plan for a new branding strategy for its high aspiration sedan, Logan. This was the only car model which was most affected with the failed Joint venture between Renault and Mahindra. Goenka also commented that the company is not under any obligation of carrying the the same brand name for Logan so they can shed down the diamond shaped brand sign of Renault.

By now the Indian partner of this joint venture was responsible for the sales and distribution of the Logan and Renault looked for the product know-how.

Among the passenger car segment, Mahindra Logan will be the first model from Indian major. The company will work basically on two areas- a refreshed version of the car and second working for the low priced variants of Logan. The overall length of Logan will be trimmed off in the new variants which will help it to enjoy lower excise duty in Indian auto market.

On the other hand Renault is also working hard towards the new strategies where an exclusive chain of sales and distribution network is planned for the company. The company is targeting a total of 70 outlets by the year 2013. moreover the company will soon come up with its exclusive SUV Renault Koleos and the stunning sedan Renault Fluence. The car models will enter the Indian shores in completely-knocked down form and will be assembled at the Renault's facility near Chennai. The comp officials have also claimed to sell 70,000 cars every year by 2014.

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