Wednesday, April 11, 2007
Vol-3/Issue-6/2007
Money matters more-03
Less than Rs one lakh small car from
Less than Rs one lakh small car from
Mohindra Renault
France headquartered Renault is among the top 10 car makers in the world that rolls out over two million vehicles every year. Mumbai based Scorpio fame Mohindra & Mohindra with Renault will launch their small car Logan for the Indian market with in two years of forming their joint venture. Renault CEO Ghosn surprised at the lessons he has learnt in India. As against huge capital cost he says “ we are discovering through our partnership with M&M that the level of investment for a specific objective can be done frugally” he further stressed “there is growing demand across the world for cars that just do the job. Many people don’t want fancy feature”. He is interested in bringing low cost small car. “In India to be a volume player you need to sell a car at below $3000, even $2000” Ghosn says.
Between both companies they have together invested Rs.700 crore in facilities and re-engineering to role out Logan.
M&M will earn revenue for leasing out its Nasik factory to the joint venture and commission for selling Logan through its sales net work; In addition it will learn new techniques in designing and manufacturing vehicles.
There is a lot of benefit for Mahindra Renault joint venture partners and it is an example of frugal engineering in India.
The Times of India 6th April 2007 page Times Business
France headquartered Renault is among the top 10 car makers in the world that rolls out over two million vehicles every year. Mumbai based Scorpio fame Mohindra & Mohindra with Renault will launch their small car Logan for the Indian market with in two years of forming their joint venture. Renault CEO Ghosn surprised at the lessons he has learnt in India. As against huge capital cost he says “ we are discovering through our partnership with M&M that the level of investment for a specific objective can be done frugally” he further stressed “there is growing demand across the world for cars that just do the job. Many people don’t want fancy feature”. He is interested in bringing low cost small car. “In India to be a volume player you need to sell a car at below $3000, even $2000” Ghosn says.
Between both companies they have together invested Rs.700 crore in facilities and re-engineering to role out Logan.
M&M will earn revenue for leasing out its Nasik factory to the joint venture and commission for selling Logan through its sales net work; In addition it will learn new techniques in designing and manufacturing vehicles.
There is a lot of benefit for Mahindra Renault joint venture partners and it is an example of frugal engineering in India.
The Times of India 6th April 2007 page Times Business
