The new Dacia Logan sedan, made by Renault and Mahindra&Mahindra in India, which will show up in India at the beginning of next month, will compete in the indian small car market, for which the indian authorities give reductions in taxes.These facilities are given for cars with a length smaller then 4 meters, and an engine smaller then 1.2L for petrol and 1.5L for diesel. Almost two thirds of the indian cars are from the small class.
As for the Dacia Logan, its success depends in India on the price, because at this level the customers are sensitive to this criteria. The indians will buy the Dacia Logan at a price of $10.000, while GM wants to sell the Chevrolet Spark at a price of $8000. Other important competitors for the Dacia Logan are the small cars built by Ford, Tata Motors and Suzuki. Initially, Renault and Mahindra wanted to make 50.000 Dacia Logan in a factory of the indian company, but in the end the value of the project got to 900 million dollars, and the total production capacity raised to 400.000 cars per year, in the next 7 years. The opinion of the specialists was that Renault would’ve had problems on its own, but they will manage with the help of Mahindra.
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