The criss-cross situation for Renault in Indian market has nothing to do with its continued presence, said the company people. They are relieved that the likes of Peugeot (which went into recluse 12 years ago leaving some 2000 people jobless) would not happen with Renault. Renault’s Indian proposals include one with M&M which is kept on high profile, a design centre in Mumbai, a logistics centre in Pune, an engineering centre in Chennai.
In addition, there will be a JV with Nissan(at Chennai) at Rs4500 crore and a JV with Bajaj for a low-cost car. There will be a common President & CEO for both Renault and Nissan. But as of now Nissan is making news with its movements, while the JV with M&M is kept in abeyance (since the fall of Renault’s Logan in this month to just paltry 500 units). Sensing the trouble, Renault has initiated the revival mission and is to bring the second wave of products. But the industry observers feel that there is still a tough time for Renault to retrieve its Logan unless it is modified with its length by 4 meters (which would fetch less excise duty). Also in the mindset is to go for whole localisation to reduce the cost.
It is to be seen how Renault is going to swing the steering to reach the safe and right direction. Renault sees much scope in sharpening the proposal meant for the Chennai plant in terms with Nissan so as to accrue volume of business but the company has not yet ignited properly.
M&M should sell the Logan at its international reasonable price, not at Indian premium car price. They should realise at least now that it is not that easy to fool the Indian customers.