The Honeymoon between M&M and Renault is over, but flirtation goes on
The Indian truck company Mahindra&Mahindra has departed its journey with Renault paving way for whole amalgamation. The departing deal will make M&M to buy the share of 49% owned by Renault. The deal will in no way be a constraint for M&M to avail the platform of Logan from Renault. The President of M&M for automotive and equipment sector said the negotiations are under process to secure the rights from Renault for continuing with Logan platform on royalty basis.(Renault-M&M pact over Logan cemented)
This concept may be continued for any other car springing off from the Logan [images] platform- Sandero (hatchback) Logan MCV (Multi-Convivial Vehicle) and Duster (SUV). However, Renault is not in a hurry to let its right go for M&M and the options are there for more partners for passenger cars, said the Chief Operating Officer for Renault. The new set up will require M&M to be the sole venture to pay manufacturing contract fee to MRPL vice versa.
Post- deal, M&M will bring out the refined Logan in a time span of two years, with increased localization from the current 60%. M&M will definitely modify the Logan to suit the norm fixed by the government for availing excise duty relaxation. Cars with the length of 4 metres in the 1.2 lit petrol version are eligible for this duty relaxation. Further refinement will include engineering operations, R&D with the technical know-how from Renault. With the individual venture of bringing in Logan, M&M is optimistic about successful run of this car in the domestic market. M&M will coordinate sales, dealerships, purchasing of components and manufacturing single handedly which will procure cost efficiency and product efficiency.(M&M may slam brakes on investments in Renault JV)