Mahindra to take full control of JV with Renault

Mahindra the Utility vehicle market leader in India announced the acquisition of remaining 49% stake from Renault in its JV “Mahindra Renault Pvt Ltd.,” that had started in 2005.

In March M&M had pulled some of its management from JV (link) indicating the relationship reaching an end. Renault is making its own plans to launch the cars in India by 2011 having its plant ready in Chennai. Renault also is planning its own dealership network.

The relationship with Renault ended in 5 years that saw the failure of Logan car in an otherwise very upbeat Indian market. Logan is the only brand that saw declined sales for 200910 from over 16 OEMs.

Mahindra will keep the Renault logo on the car till the end of 2010 and reposition with a new logo from then on. THE technology from Renault would be bought as license basis.

Mahindra – Renault relation coming to an end with Key executives pulled out

Amidst continued rift between M&M, the leading utility maker in India and Renault the French car maker seems to be coming the fag end with M&M pulling its key management personnel including the CEO of their JV responsibilities.

The JV sells the Logan car that has done very poorly in an upbeat Indian car market.

Renault has indicated that it is working on a road map to develop its own dealer network and bring in more models to India roads.

There might be a formal announcement of an exit plan within months.

Renault planning its own plan for India

Renault the French automaker that came to India about 5 years back with a lot of plans and joined hands with Indian partners is planning to lay its own roadmap.

Renault started a JV with the Indian utility vehicle leader Mahindra to build and launch Logan model in India. However this relationship has had its own ups and downs with both parties sticking to their own strategies in pricing, styling leaving the car sales way below the market avg. Perhaps Logan is one of the misses on Indian roads in recent times. Renault also has an agreement with the Indian 2 wheeler major Bajaj for a small car project.

According company sources Renault is in final stages to renegotiate the JV status based on the present health of the partnership.

Renault that owns the Japanese car maker Nissan cars, has a manufacturing facility in Chennai and panning to bring its own range of vehicles by 2011 and planning to setup its own distributor channel.