Breaking News – M&M buys out Renault’s stake in JV

Renault's badge may be replaced by the Mahindra badge when the Logan facelift is launched

Ending months of speculation on the future of the Mahindra-Renault JV that manufactures the Logan, Mahindra Renault Pvt Ltd (MRPL) have officially confirmed the JVs future direction. Under the new agreement, Renault will exit the JV with Mahindra who will buy the remaining 49% at an undisclosed amount. Mahindra will take over the rights for the Logan including manufacturing, marketing and engineering to suit Indian tastes. Renault will continue to provide technical support through an exclusive license agreement that will see them supplying engines and transmissions. Other Renault models based on the same platform such as the Sandero are not covered under this deal.

“Renault is fully committed to the success of Logan in India. We will continue to extend support to Mahindra to help in gain market share,” Renault Executive Vice-President Asia and Africa Katsumi Nakamura said. Post restructuring, MRPL will be a wholly owned subsidiary of Mahindra and Mahindra. Moreover, the Renault badge will be retained for 18 months after which the Logan will sport the Mahindra badge.

Read our report on the shortened Logan here.

“The new agreement between Mahindra and Renault will give us the opportunity to chart out a new strategy to help drive the Logan brand in India, which will also include engineering changes, keeping in with customer requirements,” M&M President Automotive Pawan Goenka said. A senior Renault India official said after the new agreement, Renault will not sell the Logan on its own in future in India.

MRPL has so far sold 44,000 Logans in India since its launch in March 2007 and exported over 2,600 to Nepal and South Africa. Sales have been dwindling of late and an immediate countermeasure was imminent. Mahindra’s understanding of the Indian passenger vehicle market is not its strengths but they do know how to sell a vehicle in the market and with this issue sorted, we can look forward to the Logan getting back on sale in India with India-centric changes.

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