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

Before the W177 goes on sale in 2018, Mercedes-Benz had to go back to the drawing board to check on the A Class’ interior. This is because the new model...
by - November 24, 2017
If you see the Aston Martin’s 2018 Vantage, you would think that it is significantly different from most of Aston’s GT lineup. For instance, if the DB11 is a fine...
by - November 24, 2017
Even as Chevrolet is making a huge splash in the industry with the recent launch of the new Corvette ZR1, there may be trouble brewing. Chevrolet has announced huge discounts...
by - November 24, 2017
The 2018 GMC Sierra 2500HD has arrived this week at the snowy mountains in Colorado for its winter long debut. GMC’s tracked Sierra Mountain Concept will be on display at...
by - November 24, 2017
We’re willing to bet that the Bentley Bentayga is not the first thing that comes to mind for most people who are into off-roading and outdoor activities. It just doesn’t...
by - November 23, 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