Logan in the Path of Change

Mahindra Renault Logan, an offspring of the joint venture between the Indian car manufacturer Mahindra and Mahindra and the French car manufacturer Renault though fetched good prospects initially for the company, has soon run into trouble and is hardly selling 500 units per month.
The company started realizing that the much hyped model of theirs is not bringing them profit and that their future is at stake. They had realized this some time back but did not bother to look back to rectify the problem as they did not want to figure out the problem! But now the company is finally ready to accept it and is getting ready to revive the sagging sales of Mahindra Renault Logan.
The company currently is in the lookout for more and more options to revive and boost the sales of the car. Of the many options that the company is considering are, to bring in a new model, abandon the Logan, and refresh the Logan and so on. This mid-sized sedan, which has supported the existence of the joint venture, will not be deserted by the company but instead will be given little tweaks here and there to make it a small car; in fact little tweaks will be too little to do the magic so perhaps some major ones.
Mahindra and Mahindra is in talks with the Renault to see whether they can dress up Logan as a small car and thus reducing the excise duty of the car by including it in the small car sector, which piggy backs on low duty. Let us all wait for a new Logan which will be not only seen in the green paint with a yellow number plate.

Logan in the Path of Change

Mahindra Renault Logan, an offspring of the joint venture between the Indian car manufacturer Mahindra and Mahindra and the French car manufacturer Renault though fetched good prospects initially for the company, has soon run into trouble and is hardly selling 500 units per month.

The company started realizing that the much hyped model of theirs is not bringing them profit and that their future is at stake. They had realized this some time back but did not bother to look back to rectify the problem as they did not want to figure out the problem!

But now the company is finally ready to accept it and is getting ready to revive the sagging sales of Mahindra Renault Logan. The company currently is in the lookout for more and more options to revive and boost the sales of the car. Of the many options that the company is considering are, to bring in a new model, abandon the Logan, and refresh the Logan and so on.

This mid-sized sedan, which has supported the existence of the joint venture, will not be deserted by the company but instead will be given little tweaks here and there to make it a small car; in fact little tweaks will be too little to do the magic so perhaps some major ones.

Mahindra and Mahindra is in talks with the Renault to see whether they can dress up Logan as a small car and thus reducing the excise duty of the car by including it in the small car sector, which piggy backs on low duty.

Let us all wait for a new Logan which will be not only seen in the green paint with a yellow number plate.

Mahindra Renault plans two new launches this year

French car maker Renault is looking to introduce up to two new models in India with its partner Mahindra & Mahindra this year, although it has indefinitely postponed plans to launch products from its Chennai facility.

"Our Nashik facility (capacity) is under-utilised. We are actively looking at introducing one or two new models from the plant in this year in order to have better utilisation of the capacity," a Renault India spokesperson said.

Renault's joint venture with M&M -- Mahindra Renault Pvt Ltd -- currently makes the Logan at the Nashik plant, which has an installed capacity of 50,000 units per year annum. It had produced 14,404 units in 2008-09 compared to 26,653 units in the previous fiscal due to fall in domestic car demand.

"We want to fully utilise the capacity," the official said, but declined to give details of the forthcoming launches.

Besides, the domestic market, the cars would also be exported to neighbouring countries, he added.

Renault had indefinitely put on hold introducing its cars in the Indian market from its upcoming Chennai plant on account of global slowdown, which has affected the firm's worldwide operations.

Diesel powers India’s car sales growth

THE markets may be gripped by fears of an economic slowdown and the government by inflation worries, but the Indian consumer’s love affair with automobiles shows no sign of ending. Despite rising fuel prices, India’s automobile sales grew 8.09 per cent in May, 2008, according to data released by industry body the Society of Indian Automobile Manufacturers (SIAM).

Passenger car sales in the domestic market jumped 14.26 per cent, while total two wheeler sales were up by seven per cent during the month. With the price difference between petrol and diesel going up further, the sale of diesel cars is expected to accelerate vis- à- vis the petrol versions. According to industry sources, the current ratio of car sales in models such as the Swift that is available both in diesel and petrol variant is 60: 40. This means that out of every 100 units of Swift sold 60 are powered by diesel engines, while 40 are petrol versions. Sources disclosed that in the case of Maruti's Dzire the diesel version accounts for nearly 80 per cent of sales while the petrol variant makes up 20 per cent. The new generation diesel engines are a vast improvement over the older ones, which were prone to heavy vibrations and were also noisier.

Ford Motor Company, for instance, has started registering a sharp increase in car sales after it introduced its latest diesel models. The fact that technology is an important factor is reflected in the fact that Tata Motors has reported flat growth even though the company mainly markets diesel models. The company sold 14,228 units in May this year compared to 14,217 units in the same month last year. Mahindra & Mahindra (M& M) has reported a12.98 per cent increase in domestic sales during May at 19,296 units, up from 17,079 units in the same month last year which also goes to show the increasing popularity of diesel vehicles. The company mainly produces SUVs although it has introduced the Logan car recently as part of a joint venture with Renault.

Diesel is Rs 15.76 per litre cheaper than petrol in Delhi and modern diesel engines also give higher mileage per litre than petrol engines, which brings down the running cost of diesel cars even further. However, diesel engines normally cost more to maintain than petrol engines. Each time the government raises the price of transport fuels, the price of petrol goes up more than that of diesel, as a result of which the gap has been widening over the years. The reason is that petrol is still perceived as a rich mans fuel while diesel, which is used in the farm and public transport sectors, is considered politically sensitive.

According to sources, diesel cars have a20 per cent market share in India at present. However, diesel as a vehicular fuel comes in for some criticism from environmental groups on the ground that it is more polluting than petrol. But the car companies claim that modern diesel engines emit less carbon dioxide than petrol engines and the emissions are less harmful. Both Maruti and Hyundai have also introduced alternative fuel options such as LPG and CNG this month in anticipation of some buyers opting for these models as these are cheaper to run than the petrol versions.

Who is scoring in the war of sedans?

It’s the ride quality where Logan scores over Dzire. On most other counts, it’s the Maruti sedan that offers more value for money.

AFTER SELLING like hot property in the A3 segment for a year, the Mahindra Renault Logan 1.5 diesel now faces stiff competition from the country’s largest automobile manufacturer’s latest avatar Maruti Suzuki Swift Dzire.

The Logan is powered by a 4- cylinder, 1461cc, 1.5 Dci engine, and the Dzire is equipped with a multijet diesel 1248cc engine. To distill this technical mumbo- jumbo, the Dzire is more powerful and produces excellent acceleration thrust. Yet the slower Logan should not be dismissed off- hand – it has enough spunk to beat city traffic. Fire up both the engines, and there is the rattle and hum typical of diesel cars.

Between the two, it is the Renaults engine that makes its audible presence felt. Both have a 5- speed manual transmission, but the Dzire tops with its precise gear ratio and smooth shift. Needless to say, the Logans gearbox is not as slick as the Swift sedans. The Renault cars third gear has a tall ratio that may force frequent changing of gears.

When it comes to ride quality, the Logan scores. The Renault easily negotiates dirt roads. And the Dzire seems to take sadistic pleasure in making you feel each bump on the road. At a glance, neither the Dzire, nor the Logan are stunning beauties.

The Renault has an outdated 1980s boxy look that needs at least a set of nice- looking alloy wheels and a rear spoiler to give it a passable makeover. Maruti has played its trump card and transformed its Swift hatchback into the Dzire. The sedan, therefore, retains the sporty look of the hatchback at the front, with the thick line of chrome at the rear being a take- off of the Nissan Teana and the BMW 7- Series.

Looked at from the side, though, the Dzires silhouette is awkward given its disproportionate aspects, but compared to the Logan, the Swift sedan looks contemporary and fresh. When it comes to interiors, the Dzire leaves the Logan squirming in embarrassment. As Maruti has borrowed most of the Swifts interiors, there is a sense of familiarity with the Dzires dash and the instrument cluster.

The high- end ZDI trim gets steering wheel mounted audio controls and an automatic climate control, which are both firsts in the category. The integrated audio system is neatly tucked away in the dash and is user friendly. The Logan's interiors are tacky. The beige colour adds to the cheapness of the look. The inside door handles look down market. Improper placement of the power- window buttons on the central console under the air vents requires almost a GPS system to locate them during driving. The instrument cluster, though, is clear, big and simple.

The Renault is the only car that has an onboard computer in this class. The Logans trump card is the ample leg, head and shoulder room available. It has a 510- litre boot space, which is generous in comparison to the Dzires 400 litres, which had to be shaved to accommodate the intrusions from the trunks flab. The fuel average is high for both the cars. The Logan gives 18 kmpl in city conditions and 24 kmpl on highways; the Dzire returns 14 kmpl and 18 kmpl, respectively.

The Dzire costs Rs 6.7 lakh and the Renault, Rs 6.9 lakh. Not much of a price difference, but the Maruti sedan gives more value for money. Given that they are entry- level sedans, the Logan and the Dzire have a lot going for them.