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Investment plans according to Renault India's spokesperson stay unaltered, but The Hindu Business Line claims the 5-door low cost hatchback Sandero, which uses the same underpinnings as the Logan, is far from becoming reality in India.
The Business Line writes the Sandero is commercially infeasible at this point of time. Renault originally planned to manufacture the car with JV partner Mahindra from Nashik in Maharashtra, where the duo is already manufacturing its entry-level sedan-Logan, whose market share is constantly declining.
A senior representative of Renault India has told The Hindu Business Line that the company is cautious and the initial mid-2010 deadline for product roll-out, including Sandero may not be adhered to. He was quoted as saying to the aforesaid financial daily that the parent company was giving utmost priority to its cash flow position, which naturally meant that global investments would have to be done in a prudent manner.
The Renault Sandero production happens in Brazil, Romania and Columbia. If it eventually happens in India, it will have petrol and diesel variants with small engines to avail tax benefits.
Source- Wheels Unplugged