India’s economy

India’s GDP grew a full 9.2% in 2006 to €785 million, making it the world’s fourth largest economy in terms of purchasing power parity. With this exponential growth, India’s 350-million strong middle class is going through a period of great change. The main sectors of the economy are information technology (India is the world’s leading software exporter), pharmaceuticals and the space industry. Some 1.2 million vehicles were sold in India in 2006, and the market is expanding 10% every year – a veritable goldmine for carmakers already doing business in the country and those set to arrive. Suzuki is the leader in the compact segment with the Indian company, Maruti. Honda, DaimlerChrysler and GM are strengthening their presence, and Fiat has made an alliance with Indian number-one, Tata.

Logan manufactured and marketed in India

Renault and the Indian carmaker Mahindra & Mahindra signed an agreement in 2005 to set up a joint venture, Mahindra Renault Ltd, 51% owned by Mahindra and 49% owned by Renault. Two years later, Logan went into production at the Nashik plant and was launched in India. Some 50,000 Logans will be manufactured every year and marketed under the Mahindra-Renault brand. Renault and Mahindra have co-developed a right-hand drive model for the Indian market.
This agreement has enabled Mahindra & Mahindra – India’s fourth-largest automotive manufacturer, specialized in utility and all-terrain vehicles – to extend its range of passenger cars, a market growing exponentially in India. For Renault, setting up business in India is a major step in the Group’s international development on new markets. Including India, Logan is now manufactured in seven countries.

Mahindra-Renault Logan: number-one on quality

Mahindra-Renault Logan came first in its segment in the 2007 JD Power Initial Quality Study in the Asia Pacific zone. This survey measures the quality of new vehicles between two and six months on the road. For Mahindra-Renault Logan, only 65 problems were detected for 100 vehicles, against an Indian average of 173 in 2007.

A second plant in India in 2009

Renault has also decided to strengthen its presence in India by building together with Nissan a shared plant in Chennai (former Madras). This new vehicle production site could become one of India’s biggest, with installed capacity set at 400,000 units/year. Renault will provide its engineering skills and industrial expertise and Nissan its technological expertise. The new products built by Renault at the Chennai plant will be sold under the Mahindra-Renault brand through the Mahindra & Mahindra distribution network.