Budget Logan: Will India be the source?

Published Apr 4, 2007

Share

Mumbai, India - Renault and Indian automaker Mahindra have launched an Indian-built version of the Dacia Logan for less than R72 000.

Might this be the source of the Logans Renault will be bringing to SA?

We asked Renault SA, which said it was "waiting in anticipation" to find out whether Indian-made Logans would be made available for SA import.

As soon as we find out, so will you.

The joint venture, called Mahindra-Renault, plans to sell 50 000 units through 2007 at 427 950 rupees (about R71 600) each from a plant 170km north-east of Mumbai in petrol and diesel versions.

Mahindra, a subsidiary of the R20-billion Mahindra group, holds a 51 percent stake, Renault the rest.

Renault president and chief executive Carlos Ghosn said at the launch: "India is one of the world's fastest-growing car markets.

"This is Renault's first product to be launched in India through the joint venture - a roomy, wide-bodied and reliable car with unmatched value."

India will become the sixth country for production of the Logan (after Romania, Russia, Morocco, Colombia and Iran). The budget car was developed by Romanian automaker Dacia and its parent, Renault.

This is also the first right-hand drive version of the Logan - and thus the first that could be sold in South Africa.

Renault says the Logan has been designed for markets where poorer customers are looking for cars without the accessories demanded by buyers in western Europe.

India's car market is forecast to expand by 10 percent a year to two-million units a year by 2010 as economic growth boosts buying power in the nation of 1.1-billion people.

Sales of cars in India exceeded one million in 2004, according to industry figures.- Sapa-AFP

Related Topics: