Mahindra-Renault Looking At Expanding

Renault and Mahindra, which jointly manufacture the sedan Logan in India, will expand their product portfolio to better utilise the capacity at their Nashik plant in Maharashtra. This comes as a U-turn for both car makers who had in the past ruled out expanding the product line-up in the joint venture in the short term. The scope of the current joint venture does not go beyond manufacturing Logan and integrating the distribution and sales networks.

“We are currently assessing the viability of four to five Renault cars to be manufactured in the facility and will finalise the models with Mahindra,” Ashish Sinharoy, Renault India’s senior vice president of corporate affairs said.

The Mahindra-Renault Logan did very well in the first year of its launch but sales have have plummeted. The Nashik plant has been under-utilised and the dealer network is also under-selling. Thus Mahindra-Renault are actively looking at optimising the utilisation and have decided to introduce new models in their line-up.