The equal partnership between French Auto major Renault and India’s Mahindra & Mahindra is all set to get modified and the change may result in either an exit or in one of the players ending up with a token stake. The Indian unit of French carmaker Renault announced on Tuesday that it would set up an independent distribution network in the country.
This announcement would work out with either Renault buying out Mahindra’s 51 percent stake in the joint venture or Mahindra buying out Renault’s 49 percent stake. The other option in pipelines could be Renault having a majority stake, with Mahindra holding a minimal share and Logan and its variants being manufactured out of Nashik on a contract basis.
Renault, at the Auto Expo held in New Delhi last month had said that it would introduce several cars in the country within 18- 24 months and a full range in 48 months. The company also announced its plans of launching the Fluence and the Koleos models in 2011, both of which will be manufactured at its upcoming facility in Southern India.