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Mahindra Logan Prices have been cut by Rs 80,000

By Motortrend India Staff   |   22 April,2010

India’s largest utility vehicle and tractor maker, M&M said on Thursday that it has cut the price of its Logan sedan. Mahindra and Mahindra has cut the price of the car by Rs 24,000 to Rs 80,000 across petrol and diesel variants that comply with Euro 3 and Euro 4 emission norms to provide better value for its customers. The new prices will be effective from 26 April, the company said.

Euro 3-compliant models will be available for Rs4.86-5.65 lakh, while Euro 4-compliant models will come for Rs4.89-5.80 lakh. Last Friday, Mahindra bought out its French partner Renault's 49 per cent stake in the joint venture that makes and sells the Logan in India.

The buyout of Mahindra Renault will lead to more component sharing and integration of critical manufacturing functions with the parent firm, and help offset Logan’s price cut. In value terms, 50% of the car’s parts are imported.

The split was following differences over design and engineering of the Logan, and extension of the joint venture to manufacture other models. While competitors like Maruti Suzuki and South Korea’s Hyundai Motor were on a launching spree in order to gain market share, it was impossible for M&M to function with just one model.

Recently, the Logan started seeing monthly sales of less than 500 units while Maruti Suzuki was selling almost 50,000 cars a month and the passenger vehicle market grew at 25.5 per cent in the fiscal to March 2010.

Germany’s Volkswagen, General Motors and Italy’s Fiat are launching new models and building factories to benefit from the world’s second- fastest growing car market. Some companies that lack distribution abilities are getting into joint ventures with local companies.

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