Renault and Mahindra sign a
memorandum of understanding to establish a greenfield plant
Mahindra Bolero - Photos:
Renault and Mahindra have signed a
memorandum of understanding to establish a longterm strategic
partnership in India. Under the agreement, Renault and Mahindra
would create a greenfield site with capacity of 500,000 units
per year within 5 years, offering innovative products to their
customers in India. Capitalizing on the existing joint venture
with Mahindra to commercialize Logan in India from first half of
2007, this strategic partnership would present a win-win
situation for both companies and of course for Indian customers.
Mr. Carlos Ghosn, President &
CEO of Renault said: “I am delighted to announce the
deepening and enlarging of our partnership with Mahindra in what
I see as a great opportunity for Renault’s development in India.
This gearing up of our presence in one of the fastest growing
markets in the world is key to our commitment to international
growth."
Mr. Anand Mahindra,
Vice-Chairman & Managing Director, M&M, said, “The success of
this partnership is scripted within the India growth story and
Mahindra & Renault’s shared vision for its customers. It is a
chemistry that we discovered when the Mahindra-Renault joint
venture was born. Besides, the strengths of Mahindra and Renault
will go a long way in making India a key global automotive
market.”
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A range of Mahindra as well as
Mahindra-Renault products suited to the requirements of Indian
customers will be manufactured at the new ‘greenfield’
production site under the direction of Renault and Mahindra. The
production site will include a vehicle assembly plant, shared
between the two partners. Renault also plans a powertrain
factory. Production is expected to begin mid-2009, with an
initial installed production capacity of 300,000 vehicles per
year. The manufacturing site will be announced shortly.
The product range will be marketed by
Mahindra-Renault and sold through the extensive and well-established
Mahindra channel network throughout India.
Partners will optimize production costs
through economies of scale thanks to joint investment in plant and
infrastructure, as well as purchasing synergies.
Renault
will contribute its expertise in engineering, manufacturing and
adaptation to meet customer requirements, and
Mahindra
will contribute its in-depth understanding of the Indian market and
supplier base through years of market leadership.
Both companies have the same focus on
product innovation and strategy; both strive for customer service
excellence and global competitiveness.
“Mahindra & Renault’s joint vision is
defined, however, by more than just these factors. It is centered on our
common wish for growth that will only come with making products to suit
the customer’s needs around the world,” added Mr. Mahindra. “I’m
confident in our balanced and fruitful cooperation to offer the best of
Renault and Mahindra to Indian customers,”
