Mahindra-Renault new models from Nashik plant likely

Renault India and Mahindra & Mahindra (M&M) are looking to optimally utilize their Nagpur facility.
They plan to manufacture new models from the Nagpur plant, for the Indian market and for export to neighboring markets.

Times of India has quoted a Renault India spokesperson as saying, “Our Nashik facility is under-utilized. We are actively looking at introducing one or two new models from the plant in this year in order to have better utilization of the capacity.”

Unconfirmed reports suggest that Renault-M&M may roll out the hatchback Sandero from the Nashik plant.

The announcement comes at a time when Renault has decided to indefinitely postponed plans to launch products from the venture’s Chennai facility.

Mahindra Renault had initially planned to launch a seven-seater multi-utility vehicle from Renault’s global portfolio, but the project was scrapped after it drew negative feedback in a market study.

M&M-Renault currently builds and markets the Mahindra Logan from the Nashik plant.

The joint venture’s Nashik plan boasts of an installed capacity of 50,000 units per year and has already made as many as 14,404 units in the year 2008-09, compared with 26,653 units in 2007-2008.

In 2008, Renault India had said that it would pump in close to Rs 4,500 crore over a period of seven years to produce four lakh cars annually from a car plant in Chennai in alliance with Japanese firm Nissan.

It had also said that it would have four platforms to manufacture its vehicles and launch them by 2010. These include one or two imported models under the completely built unit (CBU).

Meanwhile, M&M is said to be working on a new product positioning strategy to hold on to its 30 per cent demand in March 2009.

The Mahindras have repositioned the Mahindra Scorpio as a premium pure play SUV, the Mahindra Bolero as the entry-level utility vehicle, and the new Mahindra Xylo as a people mover.

The Maxx range has been positioned below the Mahindra Bolero as a rural/semi-urban pick-up type vehicle with commercial goals.