Mahindra & Mahindra on Monday said its troubled joint venture with Renault is offering discounts of up to Rs 50,000 on sedan Logan, intensifying speculation over uncertainty of their partnership.
Mahindra Renault Pvt Ltd (MRPL), the JV in which M&M holds 51 per cent stake and the rest lies with the French partner, has been struggling to market its only product Logan successfully in India. It sold just 4,981 units in April- February 2009-10, down 60.03 per cent from the year-ago period.
"The discount is a routine offer by the company and is valid only for March," a spokesperson of M&M said.
The company is offering discounts of Rs 50,000 on petrol version and Rs 18,000 on diesel variant of Logan, she added.
The offer comes at a time when most automakers have gone for a price increase following the two per cent hike in excise duty in the Budget. Automakers, including Maruti Suzuki, Tata Motors, Honda Siel Cars, General Motors and Fiat, have hiked the prices by up to Rs 70,000 per vehicle.
Logan dealers said discounts of various rates are available for both diesel and petrol variants of Logan, felling speculations
That they were trying to liquidate stock as question mark continues to hang over the future of the JV.
In fact, Renault-Nissan alliance Chief Carlos Ghosn had said at the recent Geneva Motor Show that he will spell out the future of the JV when he comes to India for the inauguration of the Nissan plant in Chennai.