Renault and Mahindra to restructure their joint venture

Article by Christian A., 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

Recommended

When the Crown De Luxe saloon was first released in 1972, it was at that time the most lavish Toyota model available to British customers. Both unusual and exclusive, one...
by - February 27, 2017
The ride-sharing fleet of sharing Lyft Inc. will soon include thousands of specially fitted self-driving Chevrolet Bolt electric vehicles, courtesy of General Motors. If plans push through, Lyft’s clients would...
by - February 27, 2017
J.D. Power has officially released the 2017 Vehicle Dependability Study, an annual list of the most dependable brands in the auto industry. Once again coming on top is Lexus, the...
by - February 26, 2017
Citroen revealed that its entry to the Chinese market is moving forward with the planned release of the new generation C5. While still on sale on this part of the...
by - February 26, 2017
There is definitely a second-generation Super Series from McLaren. Even in camouflaged form, it is simply incredible. But while we still don’t have the full data on how truly dynamic...
by - February 25, 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