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Mahindra-Renault Plans to Expand Product Portfolio

By Motortrend India Staff   |   03 May,2009

The joint venture between Mahindra & Mahindra and Renault which currently manufactures ‘Logan’ is planning to expand their product portfolio. This decision is taken with a view to completely utilize the Nasik facility in Maharashtra.


Mr. Ashish Sinharoy (Senior Vice President of Corporate Affairs-Renault India) said, “We are presently assessing the viability of four to five Renault cars to be manufactured in the facility and will finalise the models with Mahindra.”


Previously, the car manufacturers had no plan to expand their product line up but due to the declining sales of the Logan they are re-thinking over the decision.


Further adding to his statement he said that initially Logan was doing good sales but due to recession, the sales considerably went down. Limited choice of option was another reason for the low sales and therefore both the manufacturers decided to add more models to their stable.


Initially, when the Logan was launched, it experienced a positive response with nearly 26,000 units sold during 11 months which later reduced to 13,423 units last year.


Supporting the decision Sinharoy said, “As a result, the plant has been under-utilised and the dealer network is also under-selling. So we are actively looking at optimizing the utilization and have decided to introduce new models in our line-up.”



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