Mahindra & Mahindra, the country's biggest utility vehicle maker, is re-considering plans to sell French carmaker Renault's vehicles through its own distribution network after pulling out of a joint venture agreement in January.
The Mumbai-based maker of Scorpio sports utility vehicles has initiated discussions with Renault for a relook at the clause of selling the French carmaker's vehicles manufactured in Chennai, Pawan Goenka, president, automotive sector, Mahindra & Mahindra said. "We are in discussions," he added, but declined to elaborate.
While signing the joint venture agreement with Renault and Nissan last year, M&M had agreed to sell Renault badged vehicles manufactured at the Chennai facility.
M&M pulled out of the tripartite manufacturing JV in January this year and diverted its investments to Maharashtra's Chakan region, where it has set up a greenfield plant.
Mahindra Renault Private Limited, a 51:49 joint venture between M&M and Renault, produces the mid-sized sedan Logan at the Nashik plant.
Renault's future models will come from Chennai and the Nashik facility will only produce the Logan, according to Goenka.Speaking on the sidelines of a press meet where the company signed a memorandum of understanding with the Maharashtra government for upgrading two industrial training institutes, Goenka denied the speculation of the joint venture with Renault falling apart. "There is absolutely no truth in the story of the JV being broken," he asserted.
Meanwhile, Goenka said the extent of the auto sector slowdown will be clearer this month. The problems, however, were short-term in nature. Margins will be under pressure, he exclaimed.
M&M's eagerly awaited launch of Ingenio, a multi-utility vehicle, will take place this year. Company executives said the model is ready and production will commence soon.
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