M&M-Renault JV to launch new models despite losses

Total loss incurred by Mahindra-Renault JV had is Rs 120 crore

M&M-Renault JV to launch new models despite losses
The company’s passenger car business is expected to see a decline this year.
Indian automobile major Mahindra & Mahindra (M&M) may introduce new models under its joint

RELATED ARTICLES

venture (JV) with Renault by March 2011, even as its top official said the total loss incurred by the Mahindra-Renault JV had touched Rs 120 crore till date.

“We are in talks with Renault on whether it makes sense to bring in more vehicles under the joint venture in the next two years,” Pawan Goenka, president of the company’s automotive sector said on the sidelines of the annual Federation of Automobile Dealers Association (FADA) convention.

A decision on whether these models will be manufactured in India will also be taken in due course, he added.

Goenka said the company’s passenger car business, which sells the Logan, is expected to see a decline this year. “The Logan is faring poorer than the industry and we are expecting a decline in sales by the end of this financial year,” he said.

The company is selling around 700-800 units of the Logan a month. Goenka added the production for the car could be increased at its Chakan plant if the demand for the car picks up in future.

M&M may launch three models next year.

“We are looking to launch a small four-wheeler load carrier, a medium or heavy commercial vehicle and a new sport utility vehicle by the last quarter of the next financial year,” Goenka said.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.
Image CAPTCHA
Copy the characters (respecting upper/lower case) from the image.

EDITORIAL OF THE DAY

  • Government must give up majority ownership in loss making PSU banks

    After four years of braving economic slowdown and provisioning for rising non performing assets (NPAs), public sector banks are in urgent of capital.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

Sarthak Raychaudhuri

vice-president, HR, Asia South Whirlpool of India

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

TODAY'S COLUMNS

BK Chaturvedi

Cooperative federalism and governance

Improving relations between the states and the Centre to improve ...

Kuruvilla Pandikattu SJ

Reason drives religion, science

Both religion and science are driven by reason, claims Rama ...

Gautam Gupta

Retailers have it tough, thanks to e-commerce

For the past few months our focus has been on ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture