Flash – M&M gains exclusive rights to manufacturing Logan in India!
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Mahindra will sell the Logan in India without the Renault or Logan badge, the company revealed moments ago at a press conference. The company which once said “the era of sedans is over” with the introduction of the MPV Xylo, will get into manufacturing a tweaked Logan and sell it as a Mahindra product.
Mahindra will continue to manufacture the Logan, and in the near future, a sub 4-metre version, and Renault will receive royalty for each car sold in the process (royalty per-car arrangement). This is a small fee that will be a percentage of the value of each car sold to the customer.
Mahindra is also working on the platform to bring out a sub four-meter SUV in 2012. This SUV could sport a 1.5-liter three-cylinder CRDi engine.
The Renault association will be used on the Logan till the end of this year hinting no major changes to the product will happen till December 2010. Mahindra will sell the Logan with a different name 18 months from now, and when that transition happens, the product will go through a sea of changes, possible with new features, interiors and engines. The car will be serviced across India by the existing dealers of Mahindra.
Mahindra is allowed to build the Logan for the next five years in India. It has ruled out the introduction of new variants from the Logan platform immediately. Renault will purchase the Logan from Mahindra and sell it in South Africa.
More to follow. Stay tuned.