French automobile major Renault's plans for the Indian market are the `better-late-than-never' kind. After all, its domestic rival Peugeot was the first to land on Indian shores during the early years of the auto industry's liberalisation. But, with a product like the Logan and a local partner like Mahindra & Mahindra, Renault's plans seem to be better laid out than its French predecessor's. M&M and Renault's announcement earlier this week to set up a new greenfield plant in India by 2009 for the manufacture of derivatives of the Logan would be a win-win for both of them.

For M&M, after its erstwhile Ford contract manufacturing tie-up and the planned contract manufacturing for the Renault Logan at its Nashik plant, this is the first time it will be involved in joint manufacturing with a foreign partner. This will expand the possibilities of this tie-up for M&M, enabling it to draw on the considerable strengths in engine and gearbox technology that Renault can offer to improve the former's own utility vehicles, both current and proposed. With the possibility of the new plant featuring a flexible assembly line and a part of the capacity being made available for producing its own vehicles too, M&M may also be inclined to dispense with the need for a separate new facility.

S. Muralidhar

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