Mahindra & Mahindra to buyout Renault’s stake in JV

Mahindra and Mahindra (M&M) has said that it will be acquiring Renault’s 49 percent stake in their joint venture which manufactures the Logan.The resulting company would be 100 percent Mahindra group owned.

Renault, however, will continue to supply M&M key components, including the engine.

The joint venture was established in 2005.

“The new agreement with Mahindra and Renault will give us the opportunity to chart out a new strategy to help drive the Logan brand in India which will also include engineering changes, in keeping with customer requirements,” said Pawan Goenka, president of the automotive sector at M&M.

As per the agreement, the Logan will continue to sport the Renault brand and will be removed after 18 months after which the car shall only display the Mahindra logo.

Logan is the only car offered by the joint venture and M&M holds the licence to sell it in India, Nepal and South Africa.

The Logan is currently manufactured at Mahindra’s Nashik plant. Till date, about 44,000 cars have been sold in India and more than 2,600 units exported to Nepal and South Africa.