Mahindra and Mahindra has said it has no objections to its partner Renault tieing up with the country’s largest two wheeler maker, Bajaj Auto, for its sub-Logan small car venture.
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However, Renault hadn’t asked for a no-objection certificate, said the Vice Chairman and Managing Director, Mr Anand Mahindra, according to The Hindu newspaper.
Renault, which has a joint venture with Mahindra, is conducting a feasibility study for a US$3,000 small car project in partnership with Bajaj Auto.
“Renault did not approach us for a no-objection certificate but we have no problem with its tie-up with Bajaj,” said Mr Mahindra, on the sidelines of the India Economic Summit.
Foreign Direct Investment norms require the international partner to get an NOC from its existing partner, when tying up with new partners if the project is in the same scope of business, the Hindu noted.
The maker of the Logan has a joint venture with M&M to manufacture and sell its entry-level car in India, which is co-branded as a Mahindra-Renault product. M&M, Renault and Nissan are also working together to set up a manufacturing plant near Chennai, which will manufacture cars and utility vehicles for all the three companies.
