It looks like Renault is having a very tough time ahead. Its joint venture with Mahindra and Mahindra seems to be heading nowhere. And now when both the companies have realized that the joint venture is not bringing them any treasure to fill up their coffers, they have finally decided to talk it out.
It is still not known what will be the final decision of both the companies. But of the many issues that the companies are facing right now, the most important is the unsuccessful tenure of Logan, the only car that is launched of the joint venture between the two companies.
It does not look like the Renault will walk away from the partnership or the Indian car market. And the very obvious reason is that the Renault still wants to have its fingers dipped in the Indian car market pie, which is the most happening car market of the world at the moment.
In a joint venture between the two companies, 51 per cent of the stake is held by Mahindra and Mahindra while the rest of 49 per cent is being held by French car maker Renault. The companies will be discussing on whether it is feasible to launch a new car at this time and what should be the future plans to remain in the business. We desperately hope against hope that both the companies sort it out in a cordial way and will not think of a break up.
Renault’s ultra-low cost car plan also seems to be affected by the perplexity that is happening between the two companies.
Bajaj, its partner in producing the ultra-low cost car, seems to be not happy with the proposal of partnering only with Renault, leaving aside Mahindra & Mahindra. Bajaj already had brand issues with Renault. And the company is not comfortable in joining hands with Renault, which is already in turmoil.
Well as the companies are still in discussion, let us all keep our fingers crossed for an intelligent decision from the companies.
It is still not known what will be the final decision of both the companies. But of the many issues that the companies are facing right now, the most important is the unsuccessful tenure of Logan, the only car that is launched of the joint venture between the two companies.
It does not look like the Renault will walk away from the partnership or the Indian car market. And the very obvious reason is that the Renault still wants to have its fingers dipped in the Indian car market pie, which is the most happening car market of the world at the moment.
In a joint venture between the two companies, 51 per cent of the stake is held by Mahindra and Mahindra while the rest of 49 per cent is being held by French car maker Renault. The companies will be discussing on whether it is feasible to launch a new car at this time and what should be the future plans to remain in the business. We desperately hope against hope that both the companies sort it out in a cordial way and will not think of a break up.
Renault’s ultra-low cost car plan also seems to be affected by the perplexity that is happening between the two companies.
Bajaj, its partner in producing the ultra-low cost car, seems to be not happy with the proposal of partnering only with Renault, leaving aside Mahindra & Mahindra. Bajaj already had brand issues with Renault. And the company is not comfortable in joining hands with Renault, which is already in turmoil.
Well as the companies are still in discussion, let us all keep our fingers crossed for an intelligent decision from the companies.
Labels: Bajaj, Joint-Venture, Logan, Mahindra and Mahindra, Renault, Ultra-Low-Cost-Car
2 Comments:
This has been long expected. Anyway hope boththe companies will bring out the Bajaj low-cost car
What is the fate of the low-cost car? Will the Bajaj-Renault JV launch it? Nissan is also a part of this low-cost car project, right?
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