Renault Denies Looking New Logan JV

French manufacturer Renault stepped up and denied reports surfacing in the Indian media which claimed the carmaker will give up making the Logan model with partner Mahindra and Mahindra in favor of Bajaj Auto. The denial came after the Economic Times of India, quoting a person with inside knowledge, said Renault made an offer which would be rejected by Bajaj.

"Renault denies the rumour that there is any move to ask anyone, Bajaj Auto or otherwise, to take over the M&M stake in MRPL. Renault remains committed to the Indian market, as well as to the Mahindra Renault JV and is committed to getting back on track," a Renault India spokesman was quoted as saying by just-auto.com.

"I totally deny the way it has been reported. We are working at the moment on the way forward," Nalin Mehta, the JV's CEO told Reuters. "There are no plans to end the venture ... at least nothing that I am aware of."

Renault and Mahindra are experiencing difficulties in the Indian market with the Logan. Built from the ground up as a low-cost vehicle, Logan is not so low-cost in India, due to the 20 percent excise duty. The high pricing for the model made the JV gasp for air.

India is perhaps the single country were Logan is present which doesn't register growth for the low-cost. In fact, September was the worst month possible for the Logan, with only 500 units sold. A decrease of 71 percent from the already disappointing levels in August.