Mahindra Renualt trims to cope with low sales: Report
A trimming exercise within the JV is underway, which means that critical functions such as purchase, sales and engineering have been restructured to manage lower volumes.
Mahindra Renualt, a joint venture between France's Renault and India's Mahindra, has scaled back some business operations to adjust to lower sales of its Logan car, a newspaper reported."Initially, the organisation was designed for far higher volumes of the Logan but everything has been trimmed now to the level that can manage 500 units per month," Pawan Goenka, president, automotive sector, Mahindra & Mahindra, told the Hindu Business Line.A trimming exercise within the JV is underway, which means that critical functions such as purchase, sales and engineering have been restructured to manage lower volumes, the paper said.Renault's partnership with Mahindra on the low-cost Logan car started well, but healthy Logan sales soon began to dwindle. Its production last year was less than a third of its capacity of 50,000 units per annum and the joint venture lost Rs4.9 billion in 2008-09.