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The assembly line could be relocated from Nashik to the Renault-Nissan plant in Chennai
Renault may use its local design and engineering centre’s expertise to trim the Logan’s length
This will make it a small car, attracting lower excise and making it more affordable
Mahindra Renault’s future will be known by end-March 2010 when the partners are through with a restructuring exercise which will eventually benefit the Logan.
The no-frills sedan promised plenty when it was launched in India four years ago but lost its way halfway through its stint.
What then could be the trick to unscrambling the Logan dilemma which will leave everyone concerned in the project – the partners, dealers, suppliers, financers etc. – reasonably content? Would it result in Mahindra & Mahindra buying out Renault’s 49 per cent stake or the other way around? Would M&M be a contract manufacturer for the Logan and continue to have it retailed in its dealerships along with its own Scorpio?
IPR for Logan
Sources say that the most likely solution will result in M&M divesting its 51 per cent stake in favour of Renault which, by the end of the day, holds the intellectual property rights for the Logan.
According to them, the assembly line could then be relocated from Nashik to the Renault-Nissan plant in Chennai and the car would eventually be sold in the French company’s new chain of dealerships.
The only hitch here is that the Renault retail network would barely comprise 40 dealerships by end-2011 when the Fluence and Koleos models hit the roads. Today, the Logan is sold across the 100-and-odd outlets of M&M along with the Scorpio.
Fewer outlets, in contrast, could be a drawback but a better option both for the sedan and its new set of dealers who need more numbers than what the Fluence and Koleos can deliver. Renault also hopes to set up 40 outlets every year, thereafter, to house its future small car range.
Plans to Trim length
The other view within industry circles is that Renault will use its local design and engineering centre’s expertise to trim the Logan’s length to sub-four metres so that it qualifies as a small car in the Indian context. This would result in a lower excise levy of eight per cent, against the present 20 per cent, and make the car more affordable.
This is precisely what Tata Motors did with the Indigo two years ago and its CS (compact sedan) sibling has been doing brisk business since. From M&M’s point of view, this could have been done with the Logan too except that it is a Renault product which does not give the Indian company the right to tamper with its length. A shorter Logan could give M&M the opportunity to prove a point that the car can do big numbers.
Incidentally, the French carmaker is of the view that the Logan could do with better styling, coupled with higher localisation, to attract the Indian buyer. To that extent, the price tag could be justified without changing the length.
Mahindra Renault has already recast its business plan internally to handle lower volumes (around 500 units a month) of the Logan and a whole lot of overheads relating to manpower, publicity, imports etc. have been pruned. This is the only way losses can be kept in check this fiscal, quite unlike 2008-09 when the figure was close to Rs 700 crore.
Source:- Hindu Business Line.
 Renault is to set up dealerships on its own, perhaps the French automaker’s final act before terminating a 4-year-old alliance with Mahindra &Mahindra (M&M), the country’s top SUV maker.
The move follows inconclusive talks with M&M over the fate of Mahindra Renault (MRPL), a 51:49 JV hobbled by simmering differences between the two over pricing and engineering issues, said people familiar with the company’s plan.
The number of cities that Renault will open its own dealerships is still under review as M&M dealers have also indicated their willingness to open separate dealerships, they said.
MRPL has 100-odd dealerships, which sell their low-cost mid-size sedan, Logan, across the country. If Renault were to go independent, MRPL dealerships would continue to sell Logan, said two dealers, requesting anonymity.
Renault revealed in January plans to launch its own brands and set up an independent distribution network in India next year. The announcement confirmed talk of an imminent breakup of the JV, already under strain after the shrinking sales of Logan, which now sells just around 500 units a month from a peak of 2,200.
MRPL has been forced to cut down production at its Nashik plant, which has a capacity to make 50,000 Logans. The Renault-Nissan combine also has alliances with two-wheeler maker Bajaj Auto for developing an ultra low-cost car, and with Ashok Leyland for light commercial vehicles.
The above article has been quoted in The Economic Times, 2nd february, 2010.
What do you think about Renault’s Decision?
EDIT
Renault’s Official confirmation in the Times of India – http://timesofindia.indiatimes.com/biz/india-business/Renault-to-go-solo-launch-cars-sans-MM/articleshow/5554026.cms
Discuss and share your thoughts @ http://www.ClubLogan.com/forum
 Katsumi Nakamura - Vice President, Renault NEW DELHI — Renault S.A. will resume investing in India as the global economic crisis ebbs and plans to launch a slew of car models in the next 18-24 months to grow in the booming automobile market of Asia’s third-largest economy.
The investments earmarked for India–which were frozen for a while due to the global financial meltdown–are now back on track, Executive Vice President Katsumi Nakamura said in a statement Tuesday.
The French car maker has so far invested EUR100 million to construct a plant in the southern Indian city of Chennai.
The factory, equally owned by Renault and Japanese peer Nissan Motor Co., is expected to have an initial capacity of 200,000 cars per year.
“Our plan involves introduction of several new cars within 18-24 months and a full-range in a 48-month time frame,” Marc Nassif, India general manager and managing director of Renault India, said in the statement.
The company plans to launch the Fluence and Koleos models in 2011, he added.
Nissan is already set to start producing its first small car in India in May at the Chennai factory.
Renault currently sells its Logan sedan in the Indian market, produced as part of a joint venture with India’s Mahindra & Mahindra Ltd. Mahindra owns a majority 51% stake in Mahindra Renault Pvt. Ltd. while Renault holds the remaining.
Mahindra Renault is Launching a new variant of the Logan at the Auto Expo, Delhi 2010. Branded with VIP Luggage, it will be called the Logan
Tourer, available in both Petrol and Diesel Variants.
Mahindra Renault Logan Tourer collaborated with VIP, India’s leading luggage brand and ensures the buyers gets all he will need for that long drive with his family including:
- Great fuel efficiency best in class comfort of space
- Good ride and handling characteristics
- Even luggage specially designed for Logan by VIP, to make it a complete long drive car.
Mahindra Renault Logan Tourer Features:
- High end music system
- Hands free telephony via Bluetooth
- USB/iPod connectivity
- Color coordinated seat covers
- Rich wood finish centre fascia
- Rich wood finish end rack
- Floor mats
- Enhanced carpet
- Fog lamps in the mid variant (before it was in the top variant)
- New 14 inch wheel caps’
- Black B pillar strip
The Mahindra Renault Logan Tourer will be available in 3 colors, Java Brown, Mist Silver and Diamond White
“The new Logan Tourer features plush interior and innovative enhancements. Our idea behind co-branding with VIP was to combine its trustworthiness with Logan’s reliability, space and robustness in order to give our customers the satisfaction of an enhanced packaged offering This adds a whole new dimension of fun and adventure to the Logan’s existing value proposition of space, fuel efficiency and economy.” said Mr. Nalin Mehta, Chief Executive Officer, Mahindra Renault Pvt. Ltd.
The new Logan Tourer will be available at all Mahindra Renault dealerships across India.
According to Mahindra-Renault’s official release, “Logan Tourer has a high end music system that enables hands free telephony via Bluetooth, and also sports USB/iPod connectivity. Coupled with color coordinated seat covers, rich wood finish centre fascia and end rack, floor mats and an enhanced carpet, the vehicle also sports fog lamps in the mid variant,, which were earlier in the top end versions. Additionally the car has new 14 inch wheel caps and black B pillar strips to add to the exterior look.”
For those who still think skeptical about the Mahindra-Renault JV, here are words from the Renault-Nissan CEO Mr. Carlos Ghosn in an interview given to Business Line:-
Renault has no intentions of upsetting the applecart with Mahindra & Mahindra on the Logan project.
 “The Logan will continue to be developed with M&M,” Carlos Ghosn, Chairman and Chief Executive Officer of Renault-Nissan, told Business Line during his recent India visit.
However, it is still not clear if there will be any change in the retail strategy for the car. At present, it is showcased with M&M’s Scorpio sport-utility vehicle in the company’s showrooms. Renault is clear, though, that it is working on an independent retail strategy for its future India products and it remains to be seen if the Logan will be part of this revised plan.
“The only thing that has to be clarified for Renault is how to market and sell our products. This is not an issue with our partner,
Nissan because its retail plan is in place. Renault is working on something and is clear about an exclusive identity in the form of showrooms, advertising campaigns and so on,” Ghosn said.
M&M and Renault entered into a 51:49 partnership three years ago to manufacture the Logan sedan. The car promised plenty but monthly sales have been at the sub-500 unit level for sometime now and losses last fiscal totalled nearly Rs 500 crore. The Nashik plant has been planned with an installed capacity of 50,000 cars annually.
M&M believes that the way forward is to reduce the length of the Logan to four metres so that it qualifies as a small car in the Indian context and can avail of the lower eight per cent excise duty (instead of the current level of 20 per cent). This is applicable to any car up to four metres long whose engine capacities do not exceed 1.2 litres for petrol and 1.5 litres in the case of diesel.
“The excise duty is an issue in India but we need to continue to work on the Logan to adapt it to local tastes. We also need to do it quickly and with a good knowledge of what customers want,” Ghosn said.
According to him, the other solution lay in localisation of components which would play a key role in bringing down costs. It now remains to be seen which of these options would be exercised though he was categorical that both parties would work jointly on finding an answer.
“We need to do it with M&M as they have shared responsibility on the car and also possess knowledge of the Indian market. We need to decide the solution together,” Mr Ghosn said.
It now looks as if the partners are working overtime to get it right. “Hopefully, before the Delhi Auto Show kick of in January next year, you could see many things becoming clear in these small, grey areas,” he added. It will be interesting to see if some of these initiatives include a new product line-up for the Nashik plant.
Trimming the Logan will help reduce its price tag by at least Rs 50,000 but dealers are not entirely certain if that alone would suffice especially when substantial discounts are already being offered on the car to keep it moving off the shelves.
Ghosn said that the Indian customer is “value-driven and wants everything in his car” which seems to indicate that Renault may even work on some internal aspects of the Logan in terms of offering more goodies at the same price, or even lower if its length is also reduced. The car, he added, has been a huge success in Russia, Europe, North Africa and Brazil.
“We are surprised that it could not be replicated in India. The Logan is important for Renault’s future because it is the first product from us in this country,” Ghosn said.
Mahindra Renault has now Launched Logan Play . The Play is quite like a Sports variant at a great Price.
1.4-litre Petrol - Rs 5,41,850
1.5-litre Diesel – Rs 6,68,649
(ex-showroom, Mumbai).
Below mentioned are the features of Logan Play.
USB Enabled Music System
The music system lets you play music from your USB drive and turn the road into a dance floor.
Centre Console
The all new centre console in deep black mixes well with the trendy red streaked interiors.
Upholstery
It flaunts new leather seats, floor mats, steering cover and side door frames.
Driver Information System
Its DIS will keep you updated on your average speed, fuel consumption and mileage.
Parking Sensor
Its 4 reverse sensors make sure you never fail to impress others by your parking.
Alloy Wheels
The vibrant alloy wheels set the standard in high street fashion and guarantee second looks.
Body Graphics
The twin-coloured decals give you a unique on-road identity and leave everyone awestruck.
Muffler Cutter
The chrome finished muffler cutter will make you sparkle in style.
Lip Spoiler
The new lip spoiler gives this car a sleeker look and turns you into a trendsetter.
  
  
Discussion on the New Logan Play @ http://mahindralogan.forumotion.com/news-f4/new-logan-variant-t470.htm
Insider Information tells us that Mahindra-Renault is going to launch the New Logan in just a few days from now.
The New Variant IS coming and is in ONLY SOME Showrooms as yet. Even the Photo shoot is pending so pictures not available as yet. They will be with ClubLogan.com before anyone else so keep an eye here 
Anyways,
The New Model is (most probably) called Logan Play and Logan Refresh and has the following (amongst a host of) new Features:-
- Electric Mirrors (ORVM)
- Embellisher to the Boot Like the Euro Version.
- Lip Spoiler
- Alloys
and many more…
These are only some of the features i know of. More will be updated soon so keep on checking Clublogan for latest updates on the Mahindra Renault Logan.
UPDATE
Here are some pictures
PICTURES ARE REMOVED DUE TO REQUESTS FROM COMPANY OFFICIALS
WILL BE REINSTATED WITH BETTER DETAILED PICTURE POST THE NEW VARIANT LAUNCH MID SEPTEMBER.
KEEP CHECKING CLUBLOGAN.COM FOR THE LATEST 
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