Mahindra Renault to scale back some of its business operations
By Andrew C., 30 Aug, 2010. 0 Comments
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Because of lower sales recorded for the Logan car, Mahindra Renault has decided to scale back some of its business operations, according to a report from the Hindu Business Line. Mahindra Renault is a joint venture between Renault and India's Mahindra & Mahindra. In the interview, Pawan Goenka, Mahindra's automotive sector president, said that the organization was initially created for far higher volumes of the Logan but now, everything has been trimmed to a level that can manage 500 units monthly. Functions such as purchase, sales and engineering have been restructured to manage lower volumes. Sales of the low-cost Logan were brisk at the start but dwindled soon right after. Last year's production was less than a third of its capacity of 50,000 units a year and the joint venture lost 4.9 billion rupees in 2008/09.
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