Mahindra changes the name Logan to Verito

Mahindra got into a joint venture with Renault in 2005 and announced the launch of a c-segment passenger car, Logan, in India by 2007. With Mahindra and Mahindra holding 51% of the stake and Renault the remaining the cost of the project was to Rs. 700 crore. The production plant was to be located in Nasik with a manufacturing capacity of 50,000 units annually. The car was launched as per schedule in 2007.

At the time of the launch, the joint venture expected annual sales of 30,000units annually but the car could achieve an insufficient one-fifth of the desired target with just 500 units a month on the sales board.

The Mahindra Renault Logan will now be called Mahindra Verito

Three years later…  Mahindra and Renault decide to call the quits on the joint venture. Reason? The Logan was not a very sales graph changing product due to which both parties entered into a blame game. A mutual solution to the chaos ended in Mahindra buying the stakes of Renault and making it a subsidiary of itself. The French company agreed to continue providing certain key components to M&M like the engine and the transmission. As per the final understanding between the two auto majors with respect to the split, M&M was permitted to use the Logan brand for 18months. Post this time duration, the Indian car manufacturer would have to take off the Renault tag from the product and its dealerships.

One more year later. April 25, 2011. No, they don’t start a joint venture again. That will just make the automobile industry extremely Bollywood’ish’. Mahindra declares that the c-segment sedan Logan will now be called Verito.

An actual statement behind the reason for the change in the name and about their new approach to bring the old car on the sales chart is yet to reach our ears. But, M&M’s new strategy to ensure that the c-segment car doesn’t not fail again will be interesting to watch.