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 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.

EDITORIAL OF THE DAY

  • It’s time to shift sugarcane production to water abundant states of eastern India

    During the 10 years of UPA rule, the country was able to come out of the so-called sugar cycle — two years of surplus followed by two years of defic

FC NEWSLETTER

Stay informed on our latest news!

TODAY'S COLUMNS

Simon J Evenett

VW scandal has lessons for Make in India

In recent years, when it comes to widespread corporate wrongdoing, ...

Zehra Naqvi

Do you seek peace or conflict?

The pursuit of peace se­ems to be one of the ...

Dharmendra Khandal

So, how do we define a 'vermin'?

These days there’s an ongoing debate whether to declare various ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture