Renault’s joint venture with Mahindra & Mahindra (M&M) has begun Logan sedan exports from India to Nepal in what is likely to be the first step towards using the low-cost operation as an export manufacturing hub.
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The Logan will be distributed in Nepal by Agni Incorporated, the current distributor of Mahindra vehicles there, an M&M statement said.
Buyers will be offered 1.4 GLE petrol and 1.5 DLS diesel variants to start with other versions following later.
“Since its launch in 2007, the Logan has carved a distinct niche for itself in the passenger car segment in India, which is a clear validation of its solid build, performance and fuel efficient nature. We are now delighted to introduce the Logan to Nepal which has a rapidly growing automobile industry and is the first international market for [the joint venture],” M&M said.
“Our distributor, Agni Incorporated, has been associated with the Mahindra brand for several years and has made a significant contribution to its success in Nepal. With its wide national network and in-depth knowledge of the local market, Agni will give us a definite competitive edge in the passenger segment in the country,” said Mahindra Renault marketing head Gerald Porcario.
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By GlobalData“Mahindra is the market leader in the utility vehicle and pick up segments in Nepal where it has been a respected brand name for over 15 years. We believe that the Logan offers a strong value proposition that will make it the preferred vehicle in its segment,” said Agni managing director Cabinet Shrestha.
M&M said the Logan, launched in 2007, was now among the top three sedans by sales in India and had been ranked best entry-level midsize car for initial quality in a local JD Power survey.
But a local report said the model’s sales in the crowded mid-size segment had fallen in recent months after higher fuel prices and rising interest rates deterred buyers wanting to trade up. Fiscal year (from April) sales to date were off 26% to 6,001 units.
M&M said the automobile industry in Nepal was growing at a rapid rate with major Indian, Japanese, Chinese and Korean manufacturers already present. Nepal is land-locked and roads are the only means of transport so agriculture, industry, trade and tourism all depend on land travel to a great extent.
Renault is talking with Indian motorcycle manufacturer Bajaj Auto Ltd to build a low-cost car to compete with Tata Motors’ Nano, scheduled for launch later this year.
But there were clashes at the Nano plant site on Thursday as protesters vented anger over land allegedly seized so the facility could be built.
