As Mahindra-Renault joint venture of 4 years nears its end (due to the differences between the two companies on the pricing and engineering issues), Renault will be launching independent dealerships across the country. The number of cities that Renault will open its own dealerships is still under review.
Currently, MRPL (Mahindra-Renault) has 100-odd dealerships, which sell their low-cost mid-size sedan, Logan, across the country. If Renault were to go independent, MRPL dealerships would continue to sell Logan, said a couple of dealers.
Renault revealed in January plans to launch its own brands and set up an independent distribution network in India next year. The announcement confirmed talk of an imminent breakup of the JV, already under strain after the shrinking sales of Logan, which now sells just around 500 units a month from a peak of 2,200. Due to this, MRPL has been forced to cut down production at its Nashik plant, which has a capacity to make 50,000 Logans.
The Renault-Nissan combine also has alliances with two-wheeler maker Bajaj Auto for developing an ultra low-cost car, and with Ashok Leyland for light commercial vehicles.