PUNE: Carlos Ghosn's multi-partner strategy will not rob first joint venture Mahindra Renault of products beyond the Logan family. According to Mr Ghosn, Renault will stick to its agreement with M&M and market all its passenger cars except the ultra low-cost car through Mahindra Renault in India.
?That is the agreement,? Mr Ghosn said. ?Mahindra Renault will be the front organisation for marketing all Renault products in India and they will be badged Mahindra Renault.?
The agreement with Mahindra, he said, covers all conventional products. Which is why the ultra low cost car, an unconventional product, is out of its ambit. Mr Ghosn?s explanation echoes that of Dr Pawan Goenka, president-automotive, M&M. ?If any product from Renault comes to India it will come to a Mahindra Renault showroom and be badged Mahindra Renault,? Mr Goenka told ET.
As for Nissan, its OEM arrangement with Suzuki for the Splash is ?mainly for exports? and does not clash with the ultra low cost car, Mr Ghosn said. ?It doesn?t compete or overlap because the ultra low cost car is a completely different product at a completely different price point.?
Mr Ghosn said he was partnering with Bajaj on the ultra low cost car because it is a well run company which is high on quality, productivity and profitability. It?s motivated and it is easier for a three-wheeler maker to upgrade to an ultra low cost car than a four-wheeler maker to downgrade, Mr Ghosn said.
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