Mahindra Logan sales increased marginally in May 2010

Mahindra Logan, the only sedan model in the Mahindra Mahindra's India portfolio is not seems to be overcoming its dismal performance in India as the company has reported a marginal increase of 5 % in its sales during the month of May 2010, as against the same period of last year. The company has managed to sell only 450 units of this car in India during this month, as compare to 427 units sold in the month of May 2009.

The dismal performance of Logan came even after announcement of Rs 80,000 discount by the company in April 2010. However, the sales figure in the month of May 2010 was considerably well as compare to the sales of April 2010, during which only 303 units of this car were sold in India.

Mahindra-Renault joint venture came to an end in April 2010, after Renault sold its stake in JV to Mahindra Group due to the issues on prising and designing of the Logan sedan. This restructuring of the deal was a result of lowering down sales of the Logan over the years. Where the Mahindra was keen on reducing the size of the sedan so that it could qualify for the small car segment and would be able to receive a excise duty cut, the Renault wanted to keep the original size of this car.

According to a statement given by Mahindra's spokesman to a leading business daily, It will not be proper to compare the sales figures of May 2010 with same month of last year as the company hasn't provided a price cut in May 2009 and sales were lowering down. The comparison should be done with April this year, when a discount of 80,000 was there. Only 44,000 units of this car have been sold in India since its launch in year 2007.

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