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Mahindra Wants Renault to Join with its Passenger Car Sales

By Motortrend India Staff   |   09 September,2008

Mahindra and Mahindra ready to increase its sales in the passenger car market with the French manufacturer Renault. M&M has made an offer with Renault for joint tagging and distribution of its new cars that are rolled out from its Chennai plant. This is mainly to expand its rapport with Renault beyond Logan. However the Chennai factory will start its production from 2010.

According to Pawan Goenka, President of Mahindra's automotive business, "We are working on how to take the relationship forward. The attempt is to see whether Mahindra's joint venture with Renault could be the distribution channel for all of Renault products in India. We are talking to Renault very seriously right now. A distribution contract is also expected to lead to joint badging, cars sporting both Renault and Mahindra brand names.”

Mahindra senses that the joint plan can increase M&M’s offerings and venture in the domestic market, which is growing tremendously.

Pawan Goenka also said that, the discussion is on with the parent group and these could further enhance our existing relationship. While our current tie-up is for production and distribution of Logan, we are looking at expanding the scope to include distribution of Renault cars through Mahindra-Renault joint venture in India.

Mahindra Scorpio has made a remarkable place in the market but also feels the need of partnership with Renault to start off competitive passenger car business. Therefore, it entered with Logan and if Renault joins hands to extend more products then Mahindra could become one of the major car players in India.

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