Renault and Mahindra to restructure their joint venture

Article by Christian Andrei, on August 29, 2010

Within 30 to 45 days, we will know if negotiations between Renault and its Indian partner, Mahindra & Mahindra, about restructuring their joint venture, are successful. Renault revealed plans to set up its own dealer network in India.

Country head Marc Nassif said that it wants to start with 15 dealerships by mid-2011, and in the next 30 months, increase the number to 150.

Nassif said that it's never too late to come to India as its market is expected to triple in the next 10 years. Despite a good start in India, sales of the Logan have dropped considerably since 2008.

The reason being pointed at is pricing; since it's more than 4 meters in length, the Logan has a factory gate duty of 20%. As a result, it becomes too expensive for its target segment.

Renault India's Chief Operating Officer Sudhir Rao said that various options are being considered for the joint venture MRPL (Mahindra Renault Pvt Ltd) as a business and Logan as a product.

Roa divulged that Renault is confident about arriving at a positive solution for both firms. He declined however to say what form the restructuring would take.

The joint venture has about 110 dealers across India. Renault owns 44% of Japan's Nissan Motor Co., and the two firms plan to build an ultra low-cost car in India in partnership with motor bike maker Bajaj Auto, with a launch expected in 2012.

The Renault-Nissan alliance will pour in 45 billion rupees ($974.03 billion) spread out over seven years to build a plant in Chennai, southern India, which will have an annual production capacity of 400,000 units.

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Volkswagen Group’s dieselgate saga continues, but it appears the German company would be able to get out of trouble, but it would not be unscathed. This development comes as Volkswagen...
by - January 22, 2017
When a car has been in the market for nearly six years, it loses some of its luster and its customers tend to go for the all-new model with a...
by - January 22, 2017
Remember Zenos Cars, a British carmaker that specializes in designing and building lightweight and high-performance sports cars? If you are wondering how the company is faring with their E10 lightweight...
by - January 21, 2017
Mercedes-Benz has revealed that in 2017, its series 124 coupé will be celebrating its 30th anniversary. While this itself is a significant event, it will also mean that this model...
by - January 21, 2017
BMW’s 550i xDrive has long been considered as one of the most successful business sedans in the world. For the brand, this may not be enough as it has officially...
by - January 20, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries