Renault has decided to delay the launch of its passenger car in the multi-utility vehicle segment in India. It was planning to the launch the vehicle in association with Mahindra and Mahindra. Both the companies will sign a marketing and distribution pact for Renault’s products in India.
"We had a made a marketing study for a seven-seater vehicle. Unfortunately the response was not good, so we have shelved the project," said Renault India Managing Director, Sylvain Bilaine.
Renault and Mahindra currently have a joint venture in India which manufactures and sells Renault’s Logan in India. The new MPV was to be sold by this joint venture but the company has delayed its plans for now. On the other hand, Renault has decided to bring its light commercial vehicles to India. "We are a prominent market player in Europe with our three products in LCV portfolio -- Kangoo, Trafic and Master. But these products are very different from Indian conditions," said Bilaine. "We are trying to finalise the distribution agreement with M&M in the coming months. This will be for every passenger car coming into India, both produced from Chennai facility and imported," he added.
Mahindra Renault Pvt. Limited has also halved the production of its entry-level sedan, Logan. The sedan’s sales have witnessed a steady decline owing to the rising interest rates on auto loans.
