Renault Facing Tough Time with Indian Partner


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350Z

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French car maker Renault seems to be facing troubled times with its Indian partners. Rumors have been doing round that Renault has asked Bajaj Auto to partner it in producing its model Logan. Currently Renault has 51:49 joint venture with Mahindra and Mahindra and jointly produce Mahindra Renault Logan. Bajaj Auto is partner with Renault and Nissan in its ultra-low-cost car project to be produced from its Greenfield facility in Oragadam near Chennai.
Logan is one of the more successful Renault models around the world but has not had volume sales in India due to pricing issues and branding strategy. Mahindra had been seeking greater control over product re-engineering of Logan but has failed to do so. “The company will not be unhappy to walk out of the JV,” says person close to the MRPL project on condition of anonymity. This has made Mahindra tread cautiously in its joint venture with ITEC for producing commercial trucks in India. It has asked for more product flexibility in truck making in its new JV.
On the other hand, Renault denies any rumors about Bajaj Auto or any other company to replace Mahindra and Mahindra. Renault remains committed to the Indian market, as well as to the Mahindra Renault JV and is committed to getting back on track,” said a Renault India spokesman in response to an email query by a leading English Daily in India.
Source: CTI

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Renault doesn't have the image they deserves, in India. It is treated as just another diesel car from M&M. Unfortunately, this affects the sales volume and in effect no new model is coming in to India. If they can find a good JV, or if they have enough fund to establish themselves, they should do that and launch new competitive models. They really have the potential with 55 models in their brochure! The should bring Renault Megane Sedan to India, which will directly will compete with Honda City / Linea Emotion Pk / Altis. Clio can compete with Swift / Punto / Polo.

Just take a look at http://www.renault.com/en/vehicules/Pages/index.aspx. I am just wondering why they are sleeping!!
 
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350Z

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Even the Laguna is a good car, It was showcased in last year's Auto Expo and I sat in it. The car is loaded with features but lacks the space which civic has, Still it can give good competition to Altis and Civic likes.

Earlier, There were news of the Sandero and other models coming to India, Nobody knows what happened. Now I'll be more than happy if Renault at least launches the refreshed Logan sedan!

Renault needs to study bit more about Indian Auto Market. Also, Hope that they sucessfully find a better partner.
All the best Renault.

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IMHO, Renault should come out of Mahindra and start from scratch in India. And also they should concentrate on pricing of the car, as well as spare parts to survive in India.
 
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IMHO, Renault should come out of Mahindra and start from scratch in India. And also they should concentrate on pricing of the car, as well as spare parts to survive in India.
Same way Ford scratched Mahindra [:D]

Every Indian company acts stepping stone to others. Merc used Tata. Fiat used PAL. Ford used Mahindra.
 
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But Renault hasn't launched any other model than logan in India!

Moving out noe will not be enough to create vibes among customers :)

Its better they stay with M&M, launch couple of models & then break up :)
 
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Unless and until M&M-Renault products have a good sales volume, they can not survive for long. I think, M&M more interested in Scorpio, Xylo and their world Car than Renault product range.
 
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Unless and until M&M-Renault products have a good sales volume, they can not survive for long. I think, M&M more interested in Scorpio, Xylo and their world Car than Renault product range.
I Agree on this. [agree]

But Renault hasn't launched any other model than logan in India!Moving out noe will not be enough to create vibes among customers :) Its better they stay with M&M, launch couple of models & then break up :)
Maybe they can do much better in collabration with any other Indian Car Maker.

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Here is more on same from Cartradeindia.com

It is rumoured that Renault is ready for a break-off with one of its JV partners in India. According to the rumors doing rounds in the Indian auto industry, the most likely partnership to see the annulment is JV between Mahindra and Mahindra and Renault. M&M and Renault jointly produce Logan which is an entry level model sedan in India. The model has been witnessing continuous slump in its sales which further puts a question mark on the joint venture between the two companies.
Renault currently has three partners in India. It has alliance with Bajaj together with Nissan to produce ultra cheap car that is supposed to compete with Tata Nano. It also has a joint venture with Ashok Leyland through sister co. Nissan to produce light commercial vehicles.
"I am not saying we will, I am saying we can. I don't want anybody to be surprised. We have today three partners (in India),” said Renault Chairman and CEO Carlos Ghosn at the Tokyo Auto Show that began in Chiba near Tokyo today. He was answering the press to the queries put forward for the poor performance of Logan in India.

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Bad thing for Mahindra.
Well, I doubt! If they were keen on grabbing the sedan market, they would have took the initiative to do that. Of course they had the clear intentions for that and that is why they end up in a JV. However, success of Scorpio and Xylo, plus the focus on world car giving no more room for them I think [lol!] Otherwise they are not happy with JV, may be!. I still think that M&M has some thing else in mind. They won't step back from the car segment. May be they are also planning for a change in the JV!!
 
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French auto major Renault today said it will offer a full range of products in India and is constantly working towards getting the right product line up, even as it tries to sort out differences with partners in the country.

Renault will have much more products for India. There will be a full line up of products of Renault for India and we have not come to India to sell one specific car.

"It's coming to India to contribute to the development of the Indian market and will come up with a complete line up,
Renault Chairman and CEO Carlos Ghosn told reporters on the sidelines of India Economic Summit here.

Renault has three joint ventures in India with Mahindra & Mahindra (M&M), Ashok Leyland and Bajaj Auto.

It has been facing some hiccups with the partners, specially with M&M in their joint venture due to falling sales of sedan Logan, and also with Bajaj Auto on the pricing front on their proposed small car.

We are constantly evaluating all the line ups that we are going to produce at the Chennai plant and this will continue till the plant starts,
Ghosn said.


Besides, Renault with its Japan-based partner Nissan is investing over Rs 4,000 crore in setting up a passenger car facility in Chennai with a total production capacity of four lakh units a year.

The plant is expected to start production by 2010 for Nissan products.

We have a common approach between the two companies (Renault and Nissan) where platforms are going to be shared, engines are going to be shared although designs are going to be different even though the markets are going to be completely different,
he added.

Seeking to downplay the differences with partners, Ghosn said, "It is a constant learning and correction, and additions and discussion with our partners. We feel very good about our presence in India."

Asked about his meetings with partners in India, he said: "I am in India for the WEF and taking this opportunity to meet all our partners, Bajaj, Mahindra and Ashok Leyland.
"There is nothing unusual about it. Whenever I come I meet them."

Source - EconomicTimes
 
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News is that Renault India is soon going to bid adieu to their 4 year collaboration with Mahindra and plans to open independent dealerships in country, wearing ONLY "Renault" Tag.

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