Renault to restructure joint venture with Mahindra
09 February 2010
French carmaker Renault is in talks with its partner Mahindra & Mahindra to restructure their joint venture that manufactures the Logan sedan in India.
Renault is also expanding its dealer network in India, increasing it to 150 in the next two and a half years, according to its India head March Nassif.
Renault expects its Indian sales to gain from rising sales over the next 10 years or so.
"The Indian car market is set to triple in the next 10 years. It is never too late to come to India," Nassif said.
While car sales in India, especially those of the low-priced ones, increased, sales of the Logan sedan have declined since 2008.
Mahindra Renault Pvt Ltd, which saw a favourable start in India, has failed to push sales further due mainly to the 20 per cent excise duty that affected its pricing.