The Logan issue is getting a soft pedaling with JV between Renault and M&M is forging ahead to alter the petrol engine. The move comes in the wake of availing the excise relief offered by the government of India. However, the current diesel engine would likely to be continued. If the tussle is cleared then the issues related to the design and the cost of the car would be sorted out. Sources close to M&M indicate that the company is not much bothered about the car deal but it is concerned with the 30000 owners of Logan.
The JV could sell 500 units of Logan a month against 20000 units of utility vehicles. M&M wants to boss over with issues like engineering decision which Renault is hesitant to shed off. The JV between these two companies are restricted to Logan only and the initial sale from 2007 (2000 units a month) has come down to the current 500 units. The net sales during the period of April – February 2010 was 4981 units, a dip of 60%. The dealers are in a delicate situation over the dispute with these two companies.