M&M and Renault announce restructuring of JV

Mahindra and Renault announced the restructuring plans for their 51:49 JV, Mahindra Renault Pvt Ltd, through which the Logan car is manufactured. Under a Framework Agreement, the two parties have in principle agreed that M&M will take over the operations of the JV. Renault will continue to support M&M and the product through a License Agreement and supply of key components, including the engine and transmission. The aim of the restructuring is to ensure continuity and build on the positive customer equity that exists for the Logan in India, the two companies said in a statement.

Mahindra & Mahindra (M&M) will buy Renault’s equity stake in MRPL resulting in Mahindra Renault Pvt Ltd becoming a 100% Mahindra group owned company. M&M will be responsible for the management of the Logan in the Indian market. The Renault name and logo will continue to be used on the Logan till the end of this calendar year. Over the course of a transition period of about 18 months, M&M will rename the car to a Mahindra owned brand name and the car shall then only display the Mahindra logo.

M&M may make modifications in line with customer expectations and execute additional localization to reduce costs. Other vehicles built on the Logan platform by Renault globally, such as the Sandero, are not included in this new agreement. M&M and Renault will continue to work together on an ongoing basis to explore areas of synergy for mutual benefit on several fronts.