New Delhi: Mahindra & Mahindra is keeping
silence over the future of its joint venture with Renault,
which has been put into question with the French auto firm
saying it can severe ties and may even drive in its new
product into India with a different partner.
"No comment," a Mahindra & Mahindra spokesperson said when
asked about the group's views on the statements made by
Renault president and CEO Carlos Ghosn in Tokyo yesterday
regarding their joint-venture -- Mahindra Renault.
Ghosn had said although Renault's intention was to
continue in India with its three different partners (M&M,
Bajaj Auto and Ashok Leyland), it can severe ties if things
didn't work out.
"I am not saying we will, I am saying we can. I don't
want anybody to be surprised," he said.
M&M is the majority shareholder with 51 per cent stake in
the JV, which manufactures entry level sedan Logan. Declining
sales had put a question mark over the future of the JV.
Ghosn said: "We are going to try sometime, if it does not
work we will go for second time with a decent car and
eventually with a different partner, does not matter. We are
in India to stay."
Analysts pointed out that with Logan selling way below
expected levels, the capacity utilisation is hardly upto 25
percent, which makes it difficult for the joint venture to be
profitable.
Bureau Report
First Published: Thursday, October 22, 2009, 21:05