By on April 21, 2010

The emerging car market in India isn’t emerging fast enough to keep some car companies alive. Three years after Renault started to build its low-cost Logan in India, Renault is pulling out. The ho-hum sales come as no surprise to the attentive TTAC reader. As previously noted, India sells in a year what China consumes in a month in terms of cars.

According to The Nikkei [sub], India’s Mahindra & Mahindra and France’s Renault filed for divorce and agreed to dissolve their joint venture in India. The reason? Weak sales despite India’s growing car market.

Mahindra will buy Renault’s 49 percent in the joint venture, and Renault will be outta here.

Under the terms of the divorce settlement, Mahindra can keep the tools to the Dacia Logan. However, they will lose the rights to the Renault brand next year. The Logan will need a new name after 18 months.

Mahindra plans to make the Logan smaller. They think, smaller cars are an easier sell, they are also taxed lower. Previous plans to shrink the car fell on deaf ears with the French joint venture partners. The plant is operating at about 10 percent of its annual production capacity of 50,000 cars.

Those who think that Renault bids au revoir totally to India, are mistaken. The will go upmarket. Renault will produce the upscale Fluence sedan and the Koleos SUV together with their buddies at Nissan. And who knows, maybe Daimler will join the fray.

Get the latest TTAC e-Newsletter!

Recommended

One Comment on “Renault Divorces Mahindra & Mahindra...”


Read all comments

Back to TopLeave a Reply

You must be logged in to post a comment.

Recent Comments

  • Detroit-X: At the cook-off, our psychimicholigal term we call it personal opinion based on personal experience. My...
  • mcs: Something got left out of the article. The Taycan’s EPA range in only 201 compared to the Model S range of...
  • dal20402: Maybe I’m spoiled because I’ve only had one set of low-end tires in recent memory. But I find...
  • Avnut: I have had a good experience with the Altimax RT43 having them on an ’07 Rabbit, ’07 Focus and...
  • Scoutdude: I agree that tires can make or break a car and in most cases I do buy the best. However for my vehicles...

New Car Research

Get a Free Dealer Quote

Staff

  • Contributors

  • Timothy Cain, Canada
  • Matthew Guy, Canada
  • Ronnie Schreiber, United States
  • Bozi Tatarevic, United States
  • Chris Tonn, United States
  • Corey Lewis, United States
  • Mark Baruth, United States