Mahindra-Renault Planning to go beyond Logan
French automaker Renault and Indian auto major Mahindra and Mahindra, which jointly manufacture the sedan Logan in India, will expand their product Portfolio. The two Auto Major are planning to do so in order to better utilize the capacity at their Nasik plant in Maharashtra.
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We are currently assessing the viability of four to five Renault models to be manufactured in the facility and will finalize the models with Mahindra , Ashish Sinharoy, Renault India's senior vice president of corporate affairs, quoted.
Earlier, both car makers in the past ruled out expanding the product line-up in the joint venture. The scope of the current joint venture does not go beyond manufacturing Logan and integrating the distribution and sales networks. But two factors have worked towards the re-think: Logan's sales have plummeted, and the Nasik facility has been rendered under-utilized.
According to Sinharoy, Logan In its first year of its launch did fairly good but has been on a low path due to economic slump. and since there was a lack of options in terms of other models available in the joint venture's pocket ,they are planning for the expansion.
Mahindra -Renault excelled to sell close to 26,000 units of Logan during the 11 months of 2007-08 since the car was launched, while the number came down to only 13,423 last fiscal. Due to this they are not able to utilized the facilities at the plant. So they are actively looking at the utility optimization and have decided to introduce new models in the line-up.
Sinharoy also mentioned that the number for the new line ups will be totally depend on the demand.
Customers hope to get more value for money by the manufacturers as they have mentioned at the time it was launched two years ago.
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