Renault to drive in Sandero hatchback
After
freezing production plans at its upcoming Chennai plant due to economic
slowdown, French carmaker Renault has decided to use its partnership
with Mahindra to roll out Sandero hatchback in India in 2010. The plan
will also help the companies use excess capacity at their Nashik plant.
Sandero will be built
on the Logan platform and will be the first product for both companies
in the high-volume compact car segment. The car will come in both
petrol and diesel versions and sources said the engines would fall in
line with the small car definition of the government– petrol engine
below 1,200cc and diesel below 1,500cc with overall length below 4
meters– to avail lower excise duty
An
official for Renault refused to confirm the company’s Sandero move.
Pawan Goenka, head of Mahindra’s automotive division, said he was not
in a position to make any immediate comment on the matter. “Nothing has
been decided as yet. Talks are at a preliminary stage,” he said.
The
Sandero appears to fit perfectly in the scheme of things of both
companies in the 
current market situation. For Renault, it gives an
opportunity to enter the high potential small car market without any
fresh investment on their part. And for Mahindra, it marks an entry
into the small car market, something the company has so far avoided as
it focused only on the utility vehicle and SUV category.
The
Sandero makes the task easier for the companies as it shares a number
of parts with the Logan, making the sourcing of components
cost effective. The car will be distributed from Mahindra’s existing
network that also sells the Logan. Currently, 140 dealerships sell the
Logan and the number is likely to be strengthened by 40 more points by
this year-end.
Mahindra and Renault had decided to join forces
in February 2005, initially to produce and commercialize the Logan in
India. They formed a 51:49 partnership and lined up an investment of
about Rs 700 crores for the Nashik production facility.
Renault
has said it will re-start its independent product plans from Chennai
when it gets better visibility about the overall financial situation.
Source :- The Times Of India, Mumbai
This site is very informative for Renault.
Wow… I just cant wait long enough!! Hope they launch the car real soon…
I love Renault car as it body shape is very good and it is really like European style.
Ho Shi MU
Japan