Senior executives of both companies have signed a Framework Agreement stating that will see Mahindra take over the JV’s operations, buying Renault’s stake. The French carmaker will continue to supply key components, such as engines and transmissions, to the Indian company
As part of the agreement, the Logan, which is currently being sold as a Renault in Brazil, will receive a facelift that includes the car’s rebadging as a Mahindra. The vehicle will keep the Renault logo until the end of the year, with the makeover scheduled to be implemented in the course of an eighteen-month transition period.
“Renault is fully committed to the success of the Logan in India where it has achieved a high level of customer satisfaction. We will continue to extend our support to Mahindra to help it gain market share,” said Mr. Katsumi Nakamura, EVP, Asia / Africa for Renault s.a.s. “We reiterate our long term commitment to India through the recent inauguration of our manufacturing facility in Chennai and our plan to launch a range of Renault cars from 2011.”
“The new agreement between Mahindra and Renault will give us the opportunity to chart out a new strategy to help drive the Logan brand in India which will also include engineering changes, in keeping with customer requirements,” said Dr. Pawan Goenka, President, Automotive & Farm Equipment Sectors, Mahindra & Mahindra Ltd.
The move comes after the model's production has been running at a reduced rate due to the fact that its sales on the Indian market have failed to meet expectations.
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