Is Logan's dismal show souring Renault- M&M JV

Q: Is there any plan to revise your India strategy and to cut your sales target for the Logan India because your Vice President for Sales & Marketing globally for Renault, Patrick Blain has been quoted saying exactly that on Monday?

A: I think when Patrick Blain talked about product strategy, he was meaning more than marketing strategy. In the product we are going to launch these limited editions of the Logan and that is also the new marketing advertising campaign that we have just launched is with Kunal Kapoor. So we are little bit repositioning Logan car because the market is tougher than expected. What is important for Renault is that Logan is our first car in the country and this is the cornerstone of our strategy in the country and therefore working with Mahindra on this venture and the future distribution of our car is one of key targets in this country.

Q: You have admitted that you are looking at repositioning the Logan, and perhaps reviewing your marketing strategy, your product strategy as far as India is concerned. Are you looking at cutting your sales target because Patrick Blain has said that you were anticipating 50,000 which is your production capacity, you are looking to scale that down to 25,000 to 30,000 units because the car really has not worked the way that you would have wanted it to work in India. Is that correct?

A: We are near the capacity of 50,000 which is correct and we have anticipated sales in Q1, and the new product that is coming through, we are very confident that we will make the stage that will withstand.

Q: There are also rumours, there is speculation on the market that all is not well between M&M and Renault as far as the joint venture is concerned and this began when M&M pulled out of that tripartite agreement as far as your plant in Chennai was concerned, can you shed some light on that?

A: There is no disagreement with Mahindra. Last January they had decided to pull out of the plan which was their decision and we explained that at that time. Now we are working on the mutual Memorandum of Understanding (MoU) with them everyday, we are continuing the business with Logan and with the distribution of our product. Our teams are working on that and I feel confident that we will come in coming months with the agreement.

Q: I believe that Renault internally at the very senior level is exploring the options of what the road ahead for India should look like; are you saying that joint venture is intact? Is that even on the discussion table at this point in time within Renault?