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It will be a solo run for French car major Renault in India as it expands beyond its one-product joint venture with the Mahindra group that failed to impress buyers and ended up as a money-losing business for the two companies . The Carlos Ghosn-led company announced solo production and distribution plans for new products, including a small car. Renault on Tuesday said it would launch as many as five new cars over the next four years and these would be across product spectrum , including the big-volume hatchback segment.

India is a tough market, but a growing market. It is an opportunity for us to start again," Sudhir Rao, Renault India's COO, told TOI over phone from Mumbai. He said Renault plans to set up a new distribution network, which should grow to about 150 dealerships by 2014. The company plans to make new vehicles at its factory near Chennai, which is built in partnership with group company Nissan and will have a capacity of 4 lakh units per annum.

Renault's announcement of solo operations puts an end to speculation on whether it would include Mahindra & Mahindra (M&M ) in its expansion plans. With Logan failing to cut much ice in the market , relations between the two had soured, prompting them to take a fresh look at the partnership , as reported by TOI in its October 7, 2009 edition.
Sales of Logan produced at M&M's Nashik factory have been falling for more than a year, going down 61% during April 2009 and January 2010 to 4445 vehicles against a backdrop of 25% growth in domestic car sales.

Rao declined to give any specific comment on Logan JV and said Renault is talking to M&M about a restructuring , and a decision will be made in 30 to 45 days. " We are exploring various options for the JV as a business and Logan as a product," he said.
M&M's automotive sector president Pawan Goenka said the company wanted "continuity in Logan" , but declined to elaborate. Marc Nassif, country head for Renault in India, said the French car major hopes to sell over 100,000 units annually by 2014 and will introduce the Fluence and Koleos models in 2011.



Alliance In Danger


Carlos Ghosn-led Renault will not take along M&M in its future expansion and will launch five new cars, including a small car, from its factory near Chennai The present JV between M&M and Renault will be restructured as the relationship between the two companies has soured after poor performance of sedan Logan

Source: TOI

Renault-Fluence-Main.jpgWhile Renault is rather famous in the Continent for making funky hatchbacks and chic sedans, its image in India leaves something to be desired.

Armed with an entire portfolio of only one car, the Logan, which unfortunately has earned more of cab image rather than a entry-level family saloon. Blame it on the econo-box styling that comes from the French car maker's Romanian sister concern, Dacia, which specializes in practical, no-nonsense cars. Renault plans to change all that by launching the Fluence, an all-new mid-size sedan that will introduce India to proper French styling and design flair. The Fluence is expected to be launched by late 2010 and at an estimated pricing of Rs. 10 to 12 lakhs, will take on highly capable mid-size contenders such as the Honda Civic, the Toyota Corolla as well as the newly launched Chevrolet Cruze.

 

Renault-Fluence-0.jpgThe Renault Fluence is based on the well established Renault-Nissan C platform and has been developed in collaboration with Samsung. But the design language is very French with its swoopy profile similar to the Laguna, swept back headlights and hood creases. Overall, the car is extremely attractive and looks very different from the sort of cars we've seen in India in that segment. The interiors too are equally subtle and classy. But looks apart, the C platform chassis is renowned for impressive ride quality and handling.

After the practical but bland start with the Logan, Renault is all set to change its image here in India with the all new Fluence.

From what we have seen, the car looks simply stunning with its sleek coupe like profile. The brilliant design, with its delectably French design language, is further aided by an airy spacious cabin and a host of petrol and diesel engines. Once launched expect it to give the Civic, the Corolla and the newly launched Cruze a good run for their money.

Source: Zig Wheels

With depleting sales and mounting losses, Mahindra & Mahindra (M&M) and its French partner Renault are taking a fresh look at their joint venture for cars to decide on the future course for the company. The JV, Mahindra-Renault Pvt Ltd (MRPL), has failed to cut much ice in the market with the first product -- the nofrills sedan Logan -- failing to take off.

It is believed that the losses and fast-declining numbers have forced the two companies to have a relook at the entire business plan, possibly even at the partnership. While Mahindra has a 51% stake in the JV, the French car major holds the rest. 

When contacted, the two companies admitted that they were discussing future plans for the JV but emphasised that they were committed to the partnership despite the bad run. "... we are currently in discussion with Renault on various product offerings and the way forward for the Mahindra-Renault JV," a spokesperson for M&M said. Asked if this would include having a relook at the partnership itself, the spokesperson refused to comment. 

Renault also confirmed that the two companies were talking. "Renault's commitment to the Indian market remains undiluted, and we are continuing to work together with
Mahindra & Mahindra to determine the appropriate product portfolio and the way forward for Mahindra-Renault," the spokesman for the company's Indian subsidiary said. 

The JV manufactures the Logan at M&M's factory at Nasik in Maharashtra and had initially targeted an annual capacity of 50000 units. But the Logan failed to take off in the market, and never reached the targeted number. Currently, it manages to sell only around 500-600 units per month, which means that they are just utilising a little over 10% of the production capacity. 

Senior officials said a part of the talks is to see how to utilise the excess capacity that has fallen vacant due to low production of Logan on poor demand. They would see whether it would be feasible to launch new products immediately, considering Logan has not been a good start.

The JV, Mahindra-Renault Pvt Ltd has failed to make an impact in the market with the first product -- the no-frills sedan Logan -- failing to impress.

Mounting losses and fastdeclining numbers have forced the two companies to have a relook at business plan, may be partnership. Senior officials said a part of talks is to see how to utilise excess capacity that has fallen vacant due to low production of Logan on poor demand

Source: TOI Epaper

 Mahindra-Renault this time has launched the sporty version of its Logan known as the Logan Play. The car only features cosmetic changes with no changes made to its engine. The Logan Play will be available with 1.4-litre Petrol and 1.5-litre Diesel engines variant. the petrol variant is available for Rs 5,41,850 and the diesel for Rs 6,68,649 (ex-showroom, Mumbai).

The new Logan Play features USB enabled music system, black coloured centre console, leather upholstery, driver information system parking sensor, red alloy wheels, body graphics, chrome muffler cutter and lip spoiler. The Play will be available in black and white colour options with graphics on it.

Source: Carwale


 Mahindra Renault launched its new mid-sized saloon Logan Play priced at Rs. 5.94 - Rs. Rs. 6.79 lakh (ex-showroom, Delhi). The new Logan is laden with factory fitted features like black colored contrast central console, USB enabled music system, Driver Information System with average fuel consumption and speed display, special floor mats, Leather seats, steering cover and end rack. It also comes with parking sensors, boot lid spoiler, chromed muffler cutter, body graphics and alloy wheels.

New Logan Play comes with 1.4L GLX petrol engine and 1.5L DLX diesel engine models. The features are mostly cosmetic and there are no significant changes in the power train. The car is well complemented with plush interiors that make it a comfortable and elegant model. Logan Play is more like a sporty version available in black and white colour options. The new Logan Play will be available at 35 Mahindra Renault dealerships across India in phase 1 of the launch, followed by presence in all 146 Dealerships.

Source: Car Trade India

Mahindra and Mahindra, India's automobile major, has revealed that discussions with its joint venture partner, Renault, are on, for the introduction of new vehicles in Indian market.
 
"We are in talks with Renault to see if it makes sense to bring in another product to the production line," Mahindra's automotive sector president Pawan Goenka said.
 
"We will start production in early November. The first product to be rolled out would be a light commercial vehicle, followed by a truck and a sports utilitiy vehicle (SUV)," Goenka said.
 
The product launches are scheduled for December.
 
Source: India Server
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Indian automobile major Mahindra & Mahindra (M&M) may introduce new models under its joint venture (JV) with Renault by March 2011, even as its top official said the total loss incurred by the Mahindra-Renault JV had touched Rs 120 crore till date.

"We are in talks with Renault on whether it makes sense to bring in more vehicles under the joint venture in the next two years," Pawan Goenka, president of the company's automotive sector said on the sidelines of the annual Federation of Automobile Dealers Association (FADA) convention.

Source: My Digital FC

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New Delhi: Home-grown auto major Mahindra & Mahindra Thursday said it will launch three new products under different categories by March 2011.

The company, in a joint venture with French car giant Renault, is also considering to launch a new product in the Indian market. The JV's existing product Logan is expected to witness a decline in sales during the current fiscal year.

"Our passenger car business (Logan) is doing lower than the industry estimates and we will see a degrowth in the segment during the fiscal," M&M president (Automotive sector) Pawan Goenka told reporters on the sidelines of Federation of Automobile Dealers Associations (FADA) annual convention here.

"Construction of our upcoming Chakan plant is on track and production will start by November. The first product to be launched is a small four-wheeler loader under one tonne category by January 2010," Goenka said on new product launches.

The company would also roll out a truck and a new Sports Utility Vehicle (SUV) by the end of fiscal year 2010-11.

When asked about any new product launch under its joint venture with Renault, Goenka said, "we are in talks with Renault to bring in a new product in the JV, but nothing has been finalised."

The JV depends on what Renault would decide about its long term strategy regarding India, he added.

When asked about any new product launch under its joint venture with Renault, Goenka said, "We are in talks with Renault to bring in a new product in the JV, but nothing has been finalised."

The JV is dependant on what Renault would decide about its long term strategy regarding India, he added.

"We are currently producing about 700-800 units of Logan every month. We have redefined the volume and it can be ramped up in accordance with market demand," Goenka said.

On losses that Mahindra-Renault incurred, he said over Rs 300 crore loss in FY'09 was due to one time right-up on investment in the JV and the actual loss is about Rs150 crore.

About foraying into the US market, Goenka said, "We will start production from Nashik plant by December and will start the shipment thereafter. The vehicles will be sold in the US by February next year."

Source: Live Mint

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