Mahindra and Renault Call Truce

Wednesday 17 March 2010, 00:00 AM by Payal Pathak

Mahindra and Renault have a joint venture in India as Mahindra Renault Private Limited that currently sells an entry level sedan Logan in India. The company has been struggling to sell the model in India in spite of it being extremely successful in the overseas market under the Dacia brand of cars. Mahindra holds 51 percent stake in the joint venture and Renault had been continuously having situational problems with Mahindra regarding the success of the model in the Indian market. MRPL sold just 4981 units in India from April-February 09-10.

As per the latest interview with Carlos Ghosn, Renault-Nissan Chief, Renault and Mahindra have reached a fair solution by sorting out their differences. Their entry level model Mahindra Renault Logan will continue to sell on the Indian roads under the joint venture company.

"We are discussing (with M&M) how to reposition the car and how to simplify the organisation and it looks like we need to be more nimble and little fast with the market," Renault Chairman and Chief Executive Officer Carlos Ghosn said. He also reiterated that Logan will continue to stay in the Indian market and the company will work out solutions to make it competitive in the Indian market.

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