Mahindra Renault To Increase Logan Production

Mumbai: Mahindra Renault plans to ramp up output of passenger vehicle Logan as well as more than double its dealer network by October-November this year to meet hoped soar in demand during the festive season. Presently, they manufacture 2,800-3,000 units per month. They are likely to incrase this up to 4,000 units by the festive season of October. The company expects that demand, which was slow in Q1 this fiscal, growing by only five per cent in the C-segment where the Logan is placed, will pick up during the festive season which will justify the production ramp-up.

This month, however, the company will maintain the Logan output at around the July level in order to stabilise quality before increasing output to meet the expected festive season pick-up. The initial response for the Logan, unveiled in April, has been very good. The company now mulls to aim towns such as Ranchi, Dhanbad, Rajkot, Udaipur, Kota, Jabalpur, Thiruvananthapuram and Madurai, amongst others, where it sees a huge demand potential for the its brand. The company will be indulging in aggressive advertising for the Logan. The company''s strategy will involve a strong focus on test drives as well as a lot of on-ground activities. In February 2005, Mahindra & Mahindra (M&M) and Renault decided to tie up in a 51:49 joint venture to produce and commercialise the Logan in the country and it is presently being rolled out from M&M''s state-of-the-art facility located in Nashik.