Google
 

Friday, January 04, 2008

In the Aftermath of the Renault-Mahindra split should you buy the Logan

For quite some time we could see that the Renault-Mahindra JV was not exactly a happy marriage and there where differences in opinion,like for instance Mahindra did not agree with the one lakh car concept which Renault is interested in.The fact that the Logan did not really do well only added fuel to the fire.Then ofcourse Renault tied up with other manufacturers and in all probability could actually compete with Mahindra for Light commercial vehicles.Some believe Nissan may compete with Mahindra in the SUV/MUV space as well.

Predictably Mahindra pulled out of the JV but they say they would continue their co-operation with regards to the Logan.So should you go and buy the Logan.In my opinion no.The company itself seems so confused and don't know about the future prospects as to who would take care of the Logan customers.Which dealerships would cater to the Logan in future.The car itself in its first year is now depending on heavy discounting and ads so what would happen in a few years time.

However if you are the type who would change your car in the next few years but don't mind drop in resale value then you could consider the Logan.Also if you plan to use the car as a taxi then it could be the perfect vehicle with its high FE and low maintainance costs.If you are not one of these then its best to play it safe and look at the other options,one car business models for manufacturers has so far proven not to be a successful one.

No comments: