Renault is holding talks with Mahindra to build its Logan low-cost sedan in India. The Logan will probably be built in Mahindra’s plant in Nashik, north of Bombay, Indian motor industry sources told Automotive News Europe.
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Renault introduced the Logan, a 4,250mm long, three-box car mainly aimed at developing markets, in Romania in September. By 2010 the French car maker plans to build 700,000 Logans a year in seven low-wage countries.
Renault chairman Louis Schweitzer said in September that firm
is looking for an Indian partner to build the Logan. He declined to say last week whether the partner would be Mahindra.
Renault also plans to build the Logan in China with Dongfeng Motor Corp., but talks are taking longer than expected. Schweitzer said China’s government could approve Logan production there during the first quarter of 2005 “if all goes right.”
Another Logan production site will be the Avtoframos assembly plant near Moscow, which Renault owns in partnership with the City of Moscow. On October 28 Renault spent €33 million to increase its stake in Avtoframos to 76% from 50%. The City of Moscow will retain a 24% stake.
