Renault to Operate Independently in India - ends M&M Ties

February 04,2010, 10:10 IST by Payal Pathak

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Renault has finally decided to operate independently in India. After four years of alliance with Mahindra, the French car maker has finally decided to part ways in India. Mahindra and Mahindra and Renault have 51:49 joint venture in India. They launched its entry level sedan model Mahindra Renault Logan in India which failed to churn out numbers for the company. Sources close to the developments report that both the companies have been experiencing difference of opinion over engineering and pricing issues for quite some time now.

Renault will open its own dealerships in various cities of India. Mahindra dealers have also expressed interest in opening up new separate dealerships for Renault. However, Mahindra dealerships will continue to sell Mahindra Renault Logan model from 100-odd dealerships across India.

Renault is planning to introduce new sedan models in India like Renault Fluence, Renault Megane and Renault Koleos. These models will be sold from Renault exclusive showrooms. Thus, Renault will build its own brand image in the country now.

Under: Renault Fluence

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M&M has good rapport in INDIAN automobile sectors like SUV and COMMERCIAL vehicles,but not in car section.If M&M will try for manufacturing new style of jeep not like current model it will be better for that sector.Still people like jeeps in INDIA and in OERSEAS.

February 04, 2010 by Satya Satpathy

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High time that Renault took this decision. Their reputation haas been suffering since they have not been able to make any inroads into the sedan(low Priced- C category) sector, primarily because Mahindra's have expertise in selling SUVs. All other ventures of this company have still to become successful.

February 04, 2010 by Pradeepjauhar

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Its good for both of them. Except Maruthi-Suzuki I do not see any such JVs worked in India. Certainly Mitsubishi and Fiat are capable of selling their cars directly to the customers, They didn't do it, and still their success is shared by HM and Tata respectively. M&M has a focus on SUV, Two wheelers and commercial vehicles, and they have no idea for Sedans, Hatchs or small cars as of now. So, This is a good decision from Renault, they have many successful models from Dacia, which they develop in India.

February 04, 2010 by Benny

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