MUMBAI, Apr 16 – Renault has pulled out of a joint venture with Indian car manufacturer Mahindra & Mahindra that produced its first car for the growing South Asian market, the Logan, the companies announced Friday.
The Logan was launched in 2007 by the joint venture — 51-percent owned by Mahindra — but its sales have struggled since, amid criticism by some car experts of its boxy, dated design.
"The parties have in principle agreed that M & M will take over the operations of the company," the companies said in a statement, without disclosing how much the stake had been sold for by Renault.
Renault will continue to supply key components to M & M, including the engine and transmission.
The groups said they had sold 44,000 Logans in India and exported 2,600 units to South Africa and Nepal since 2007.
