Mahindra & Mahindra is developing a smaller version of the Renault Logan which it will sell as the Mahindra Verito.
The development follows the failure of the joint venture between Renault and M&M to successfully sell the full-size Logan in India. Sales never met the initial 50,000 annual target leading to the companies blaming each other for the failure. Sales during the five years totalled around 60,000.
Go deeper with GlobalData
But Mahindra could still build the Logan as a contract manufacturer on Renault’s behalf, according to Rajesh Jejurikar, chief executive of Mahindra’s Automotive Division. Last year, Mahindra supplied 2,000 Logans for Renault in South Africa.
“If we have to sell to South Africa, it would still be Renault badged. These are mainly government orders there and these come in clusters,” Jejurikar told the Times of India.
When Mahindra and Renault decided to end their five-year joint venture last year, Mahindra gained full control over the Logan and Renault has agreed to provide engines and transmissions for a sub-4m version due out next year.
“The new-look refurbished version will replace the existing version,” said Jejurikar.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
