Renault, a partner of the JV between Mahindra under MRPL, is shifting to Chennai. By this, Renault is eyeing on a larger base in association with Nissan Motor India, which bases in Chennai. The company feels that there will be more synergies by this move. However, the studio in Mumbai will continue to operate and the R&D will be in Chennai. Renault-Nissan JV is slating the manufacturing facility in Chennai with a capacity of 4 lakh units. The move will strain the end of the honeymoon with M&M, resulting with the cease of Logan making. Currently, MRPL is looking after the make and sale of Logan.
But the CEO of Renault gave some hope of revival of Logan with certain modifications as resolved by M&M, especially the length of the car. The reduction in the length will procure a reduction of excise duty it is claimed. Now Renault is going ahead with the production of Logan irrespective of the fate of the JV with M&M. the cost factor between Logan and other cars is a mute point- Swift Dzire, Indigo and Ikon sedans. Logan had to face the handicaps of left hand wiper and the price.
However, Renault is on the revamping phase by setting a sale target of 15000 units of Logan in 2010-11 against 5981 units during the period of April-February , which includes export(1000 units) also. Renault was asserting the mood of Logan on the issue of slow marketing and the hitch on the design of the car.