M&M Open for Contract Manufacturing the Logan to Renault

Renault and Mahindra & Mahindra ended their five year partnership last year, as the Logan failed to have an impact in the market. The end of the partnership resulted in Mahindra getting full reign over Logan minus the Renault motif. While Renault agreed to provide transmissions and engines for Logan in return for a Royalty commission, Mahindra has been permitted to refurbish Logan, also making a new smaller variant of this sedan.

Just recently Mahindra & Mahindra said that they were open for contract manufacturing their Logan sedan for Renault to meet their export requirements even as they recently renamed the Logan as Verito in India, sporting the M&M logo. Mahindra’s chief executive of Automotive Division, Rajesh Jejurikar, said that their agreement with Renault has made it possible for them to manufacture the Logan under Renault branding.

In the last fiscal year, M&M had supplied around 2000 units which met Renault’s requirements for their South African market. Jejurikar said that if they had to sell in South Africa; the car would still be badged as a Renault brand. These are the government orders over there, which come in clusters.

At present, Maruti Suzuki contract manufactures their compact A-Star for Nissan, sold as Pixo in European markets. Jejurikar added that the Mahindra was currently working on the modifications and that the latest model will release by next year. The refurbished new-look sedan variant will swap with the earlier variant. The small sedan variant will allow the company to sell it for cheaper costs, believing it will fall within the government’s definition of a small car to give it a lesser excise duty.

Jejurikar is positive that this car will do well in the market, especially with its Mahindra badging which enjoys considerable brand equity over here. Nevertheless, the Verito is poised to face tough competition from rival models like the Tata Indigo, Toyota Etios and Maruti Dzire in this segment.

M&M is still optimistic that the pricing of the Verito as well as its overall offerings will make it a feasible option.

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