Mahindra & Mahindra has tied up with Renault
of France for manufacturing low-cost Logan cars in India from 2007
onwards.
M&M will have a 51 per cent stake in the
joint venture with Renault holding 49 per cent. The joint venture -- Mahindra
Renault Ltd -- will produce 50,000 cars per year. The car will be marketed under
the brand name Mahindra Renault.
The right-hand drive version of the car (the
original Logan has a left-hand drive) will be developed at M&M's
existing facilities, either Nashik, Zaheerabad or Hardwar. The production
facility would offer a stamping shop, a
paint shop with pre-treatment, an an assembly line, specific to Logan.
India will become the sixth country outside
France to produce the Logan after Romania, Russia, Morocco, Colombia and
Iran. Renault expects worldwide sales of Logan to touch 1 million by
2010.