Failure of Logan in India

Topics: Maruti Suzuki, Suzuki, Mahindra & Mahindra Limited Pages: 4 (986 words) Published: February 2, 2011
FAILURE OF LOGAN IN INDIA
By Pallavi Gupta

Contents
* The JV between Mahindra and Renault
* Synergies aspired to achieve
* What went wrong
* Reasons for failure
* JV between Mahindra and Renault breaks
* Lessons learned from the past
* Corrections taken
* Current situation
JV BETWEEN MAHINDRA AND RENAULT
* A 51:49 JV between M+M And Renault in 2005
* Formed Mahindra Renault Private Limited
* The JV was materialized in order to manufacture and sell the Logan in India * Logan was commercially launched in India in July 2007
* The Logan was manufactured at M+M’s Nashik Manufacturing facility SYNERGIES ASPIRED TO ACHIEVE
* Renault, a French company, wanted to enter in Indian market with an entry level Sedan. * M+M is known for it’s rugged and strong vehicles like trucks and recent years SUV like Scorpio and others like Bolero and Xylo but lacked a passenger car in it’s product portfolio. * So, both went for a JV.

* Renault hoped to achieve low procurement and manufacturing cost, plus Indian market insights and distribution channels through M+M * M+M hoped to get knowledge of advanced technology, manufacturing, designing and prototyping process. PLUS POINTS FOR LOGAN

* Highly spacious
* Ground clearance of 172mm. Highest among its competitors. * High efficiency diesel engine
WHAT WENT WRONG

* In spite of all sanguine aspirations, Logan in India flopped like anything. * Here give the figures of cars which were expected to sell and the real figures which were actually sold. REASONS FOR FAILURE

* High pricing
* Not-so-good looks
* Poor Marketing Promotions
* Positioning of the car
PRICI NG
* A Logan was priced higher as compared to other competitors like Maruti Suzuki Swift Dzire, Ford Fiesta etc. * The reason was it’s length and high imported content. * The Logan is 4.2 meters. So, it had to shell out extra excise duty of 22 percent whereas other...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • india Essay
  • Ready to Eat Food Failure in India Essay
  • Failure Essay
  • Failure Essay
  • Failure of Coke Vanilla in India Essay
  • FDI in India Essay
  • Walmart in India: a Success or Failure Essay
  • India Essay

Become a StudyMode Member

Sign Up - It's Free