Failure of Logan in India

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

* 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
* 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

* 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
* 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...
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