Notwithstanding the stiff resistance from M&M, Renault has come forward to localize the Logan in India. But the modifications will not in any way disturb the movement in Europe, said its CEO. The Indian facility will explore the possibilities to upgrade the vehicle to suit the new requirement ably guided by engineers and technicians.
M&M is on the urge to reduce the length of the car to 4metres to avail 10% relaxation on excise duty. (the government of India has announced a relief of excise duty for cars with 4 metres on 1.2 petrol and 1.5 diesel engine and 22% for other segments. The reduction in length will procure Rs75000 on the net price of the car. But Renault sees the sale in other countries as good irrespective of excise norms. Hence M&M will have a free hand to decide the shape of Logan to avail the maximum benefit.
Style and design will undergo changes it is expected and the car will continue for sale in India. Renault is not happy with the sale of Logan in India, just 500 units a month and the earlier reports hinted at the depart of the JV between Renault and M&M. Now Renault is shaping its future of Logan by going along with M&M on certain key issues. The modifications will be on the basis of the needs of the Indian customers, said the CEO. Apart, Renault is doing its business of launching the Sandero hatchback in India.
The crucial factor on this vehicle is the cost of the car. Initially it was planned to be made in Nashik plant but the economic unfeasibility made the resistance to withdraw for quite sometime. Hence it is proposed to make it in Chennai plant under Renault-Nissan roof.