Renault set to tweak Logan, finally

The Logan may finally be tweaked to Indian specifications even as speculation continues about Mahindra Renault Private Limited (MRPL), the joint venture between Mahindra & Mahindra (M&M) and French carmaker Renault, being on the verge of a breakup.

M&M has long been asking for changes in the Logan such as a shorter length and increased localisation.

But Renault never agreed to these alterations, claiming that the sedan was based on a global platform and it made no sense to make changes for just one market (India).

Now, with the buzz about things not working out between the two partners growing louder, Renault has indicated to suppliers that changes in the Logan’s architecture are imminent.

According to sources, a “shortened” version of the car is ready for internal evaluation. The Logan measures 4.2m and the shortened version is less than 4m long, qualifying it for the lowest excise slab of 10%.

Going by analysts, compared with the Maruti Swift Dzire, Tata Indigo, and Ford Ikon, the Logan’s price-value equation is quite weak.

Issues such as the wiper being on the wrong side for a right-hand drive vehicle and pricing (between Rs4.2 lakh and Rs7 lakh), which have caused sales to falter, are likely to be addressed now.

Industry sources and component suppliers say Renault has already indicated a robust sales outlook of 15,000 units of the Logan for 2010-11 against just 5,981 units sold between April and February this fiscal in the domestic and export markets.

Carlos Ghosn, chairman and chief executive of Renault and Nissan, is currently visiting India to inaugurate the Chennai manufacturing facility, and M&M and Renault are scheduled to announce a “restructuring” of their joint venture later this month.

Acknowledging that Logan sales have been disappointing, Ghosn said on Tuesday that “we have shared this concern [on sales] with Mahindra... looking at how to reposition this car... the Logan will stay in this market.”

In the past, Renault officials have indicated that M&M was found lacking in the marketing and positioning of the car and design change was just one part of the problem since the Logan began selling in India.

Either way, if clarity does emerge on what to do with the Logan (which sells successfully in many other countries), it is entirely possible that the car would be manufactured at the Chennai facility and not under MRPL.