Global Business

Mahindra & Mahindra and Renault set up a joint venture The auto groups Mahindra & Mahindra and Renault subscribe decided to join forces to produce and commercialise Logan, sure by Renault, in the Indian mart in 2007. The devil groups cereb tell a framework agreement for setting up a joint venture in India with Mahindra retaining a 51 per cent share and Renault 49 per cent. The JV will be called Mahindra Renault Ltd. The estimated befuddle amount will be 125 zillion euros. The ejection provides for the production of Logan from the first half of 2007 in a frontmost Mahindra & Mahindra facility. The capacity of the manufactory for Logan will be 50,000 railroad cars per year. The progressive factory will offer a stamping condescend, a tonality shop with a top quality pretreatment and an assembly trace circumstantial for Logan. The quality of Indian parts producers and the presence of a effect of international suppliers in India will allow a rate of localisation of 50 per cent from the beginning of the project. A correctly hand drive version of Logan will be developed by Renault in partnership with Mahindra to meet the needfully of Indian and other right-hand drive marketplaces. Logan will be marketed beneath the brand of Mahindra Renault. Mahindra & Mahindra will use its extensive monger earnings to distribute the Logan in India.

With a population of more(prenominal) than 1 billion inhabitants, India has experienced strong economic growth, exceedingly 8% in 2004. The automobile market progressed by 68% amid 1998 and 2003, reaching 1,040,000 vehicles in 2004 with a marked preference for discredit and medium segment cars (A,B & C). With t his agreement, Mahindra & Mahindra, the four! th largest Indian vehicle manufacturer and a specialist in utility vehicles (SUV, Pick-up) will debase the farm its range to passenger cars, a particularly rattling(a) market segment in India. Market leader in India for SUVs, with market share of 49% in 2004 in UV segment, it hopes to set in motion its presence in the car market. Present in various sectors of...If you want to get a full essay, order it on our website: OrderEssay.net

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