The failure of Logan in India is making Renault re-look at its joint venture with Mahindra & Mahindra. Another reason for strain in the partnership is the mounting losses of Mahindra Renault Private Ltd. With many low cost models available in the market, the joint venture is finding it difficult to break the ice. The Indian partner Mahindra & Mahindra holds 51 per cent stake in the joint venture. However, when the officials from Renault where contacted they said that they where committed to partnership with Mahindra’s. The manufacturing unit of the company is located at Nasik in Maharashtra. The total production capacity of the unit is 50000 cars per annum. However, lower sales has forced the company to manufacture only about 12,000 to 15,000 units per annum. The company plans to use the spare capacity to manufacture new models of Logan.
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