The Beginning Of A New Chapter In Indias Automotive Saga

Vikas Tiwari Pradeep Verma

Mahindra & Mahindra Limited

US$ 3 billion Mahindra Group Set up in 1945 to make general-purpose utility vehicles. World's fourth largest tractor manufacturer. Production-1,70,000 in 2006. Major Defense Supplier Presence in key markets M&M's alliance mantra 30000 employees Main operating divisions
Automotive division Farm Equipment division

Renault
Founded February 25, 1899 by Louis Renault and his brothers.

France's second-largest carmaker and worlds tenth. Products- Automobiles, Trucks and Buses. Production :25,31,500 in 2006 A group with industrial and commercial presence in 118 countries Only vehicle manufacturer to have eight cars with the maximum five-star Euro NCAP rating. First to produce Sedan Cars. 8 times winner of F-1 Constructor title.

Renault-Nissan Alliance

Signed on March 27, 1999. Represent more than 9.8% of the worldwide market. 5.74% for Nissan & 4.04% for the Renault group With sales of 3,597,748 (Nissan) and 2,531,500(Renault Group)

Mahindra-Renault
Decided to set up a plant that would make half a million cars a year in India within the next five years to make Logan. A 51:49 joint venture

MAHINDRA-RENAULT-NISSAN
3 way greenfield auto JV into Chennai. Investment of Rs 4,000 crore. 4000,000 vehicles per year. 5000 direct jobs and 40,000 indierct jobs. Mahindra group holding 50% stake and the balance held between Renault and Nissan. Three way alliance is a reflection of changing world market.

STRENGTHS OF MAHINDRA
Presence in key markets. Extensive and well established network throughout India. Well established production facilities. Brand name Extensive Experience of Indian Automobile Sector. Ability to keep procurement and Manufacturing cost low R&D

STRENGTHS OF RENAULT
Expertise in engineering, manufacturing and adaptation to meet customer requirements Innovative, safe and environmentally-friendly vehicles worldwide Global reach

PROSPECTS IN INDIAN AUTOMOBILE MARKET

India as a market has a lot more to offer than it did 10 year ago. Easy availability of finance Higher propensity to spend in Indian customers. Accounting for over 75% of passenger car sales last year by small car segment. Suitable to the requirements of Indian customers Strive for customer service excellence and global competitiveness

DIAGNOSIS
A win-win situation for both companies and for Indian customers Improvement in M & Ms own utility vehicles Long time can be a negative parameter Consolidation to the strengths of both companies

THANK YOU