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Renault is preparing a major assault in the Indian car bazaarRenault is preparing a major assault in the Indian car bazaar. Just months before its maiden car for India, Logan, is set to blaze the roads, Renault has decided to extend its tie-up with Mahindra & Mahindra to roll out more cars in the Indian market.Both the firms have reached an agreement to extend their tie-up beyond the Logan and explore opportunities for introducing vehicles in the compact car market and the premium segment in India, sources close to the development said. "The JV, Mahindra Renault Ltd, was initially floated as single vehicle venture, which would produce Logan and its variants. Last week, both the firms agreed to extend it to cover more vehicles from the Renault stables," a source said. M&M and Mahindra Renault officials, were not available for comment despite repeated attempts. Though the companies are yet to finalise the new models slated for India, sources said they will explore options both above and below the Logan. Renault produces popular compact cars like Twingo, Clio and Modus, and these cars are expected to be examined as an option to ride the burgeoning demand for hatchbacks in the country. Its Megane and Laguna are positioned in the upper-end of the car market. M&M holds a majority 51% stake in Mahindra Renault, and their first vehicle Logan is set to mark its debut in India in May 2007. The car is expected to be rolled out with a local content of around 50%, which will be hiked to 60% soon. Trial production of Logan has already started at the Nashik plant. The initial investment in the joint venture, which has set itself a sales target of 50,000 cars a year, is pegged at $25 million (Rs 700 crore). This venture marks M&M's re-entry into the car market seven years after it decided to drive out of a venture with Ford. source: timesofindia.com |
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