MUMBAI: Renault SA, France's second-biggest carmaker, will set up its own distribution network in India as the manufacturer discusses reorganizing
its joint venture with partner Mahindra & Mahindra Ltd. Renault and Mahindra will announce details of their plans in 30 to 45 days, Sudhir Rao, chief operating officer of the French carmaker's local unit, said on Tuesday at a news conference in Mumbai. The automaker will set up its own independent dealer network in India, the company said in a statement separately.
The French automaker will review the future of the venture with Mahindra, which makes the Logan car, Marc Nassif, Renault's local country manager, said last month. The joint venture's sales plunged 64 percent between April and December, extending a 48 percent decline in the year ended in March, according to data from the Society of Indian Automobile Manufacturers.
�Sales have been disappointing in India, so they really had to restructure,� said London-based Credit Suisse analyst Stuart Pearson. After a disappointing start for its no-frills Logan sedan, Renault is playing catch-up on the Indian market.
Renault, which has its headquarters in the Paris suburb of Boulogne-Billancourt, will resume investments in an Indian factory it's building with affiliate Nissan Motor Co., less than a year after it suspended the plans, company officials said in January at the New Delhi auto show.
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