Renault and Mahindra & Mahindra could announce a restructuring of their joint venture in India according to local newspaper reports.
Sources said the two companies were expected to sign the an agreement giving Renault a majority stake in the venture, currently 51%-owned by Mahindra.
The sources gave no further details on the restructuring, and neither company would comment on the reports.
The sources added Renault and Mahindra were also working on a joint plan to re-engineer the Logan sedan, assembled locally by the JV, reducing its length to less than 4m to take advantage of lower duties.
Mahindra Renault was formed in 2005 and launched the Logan in 2007. After strong sales early on, volume has slowed following the introduction of new factory-gate taxes on vehicles over 4m long.
In the financial year ended 31 March, 5,332 Logans were sold in India, less than half the number sold a year earlier.