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Old 17th December 2007, 22:07   #1
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Default Logging off Logan ! EDIT : Sales down 80%

Confirming what BHP'ians have been saying all along . Without comments From Mint

Sales slump: production of Logan slowed


The car, which was launched in May in India, has seen sales slide in the last couple of months forcing the company to scale back production by some 30-40% this month
Sudha Menon
Pune

Mahindra Renault Ltd, the joint venture between India’s biggest maker of utility vehicles, Mahindra & Mahindra Ltd, and French auto giant Renault SA, is sharply scaling back on the production of the Logan, the low-frills sedan that helped revive Renault’s sales globally, amid a slump in sales within India.
The car, which was launched in May in India, has seen sales slide in the last couple of months forcing the company to scale back production at its Nashik plant by some 30-40% this month, say vendors familiar with the situation.
After selling 2,786 units in its launch month, the monthly sales figures were down to an average of 1,561 units in November.
At least three vendors supplying to the company said that production at the Nashik plant has been scaled back from 125 units a day in the August–September period to between 70 and 80 units a day in December and that the company plans to keep to this lowered schedule until February.
The vendors didn’t want to be named because it could affect their business with the firm, but said they are in the know because of the revised production schedule they have been handed for supplying parts to the carmaker.
One vendor said that the company is left with an inventory pile-up of the car following declining sales in the market and has cut production to tide over the current situation.
Mahindra officials say the scale-back had more to do with overall auto sales than any specific problems with Logan’s sales.
“We had a good retail sale during the festive season but (from) 15 November onward, there is a lean period in auto sales until January so we are intentionally down-stocking our dealer stock and cutting back on production,” said Mahindra Renault managing director Rajesh Jejurikar. “We are satisfied with our performance in the market.”
Indian auto sales typically slow in December because cars that are bought in that month get tagged with the vintage of that year and could potentially see a dip in resale value in future. Consumers prefer to wait for the new year to get that year’s model and, typically, sales pick up in January.
Some car makers also typically shut production for a week in December for scheduled maintenance. But rarely do the December blues translate into scaling back production by as much as third or more, as seems to be the case with Logan.
Some analysts say that Logan is perceived as an over-priced product for its segment in India. Globally, it is sold for around €7,000 (Rs4.03 lakh) and has proved to be a volume grosser for the French car maker.
In India, however, the car begins with a price tag of Rs4.28 lakh for the petrol variant and goes up to Rs6 lakh for the diesel version, and has aggressive competitors such as the Maruti Swift, which was launched in May 2005 by India’s largest car maker, Maruti Suzuki India Ltd, and has sold 172,000 units so far. Mahindra Renault has sold 16,300 Logans since its May launch.
“It is a great product in terms of space (and) mileage, but when a consumer pays Rs6 lakh and above for a car, he does not want to be even perceived as driving a cheap car. The company has lost its chance of making it the car of choice of the executives and upwardly mobile car buyers,” says S. Ramnath, vice-president at SSKI Securities Ltd.
Some of Logan’s vendors, meanwhile, are expressing concern over falling sales of the car. Many of them have made investments in upgrading their production facilities to meet Renault’s quality guidelines—teams of Renault executives visited vendors all over the country to check out their facilities before signing them on the Logan project.
The joint venture itself invested Rs700 crore and plans to produce 50,000 cars annually at Nashik. From its launch in 2004 to the end of October, some 700,000 units of the car—all its variants—have been sold across the world. The Logan is being produced in seven countries with South Africa on the anvil.


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Last edited by Mpower : 18th December 2007 at 01:08.
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Old 17th December 2007, 23:58   #2
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This was sure to happen. Recently i sat in a Logan and i can understand why sales are decling, the car is absolutely basic and there is nothing called styling in it. Renault trying to sell models for 4Lacs is nothing less then sucide.
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Old 17th December 2007, 23:59   #3
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They should really think seriously about getting the Sandero asap.
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Old 18th December 2007, 00:23   #4
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Originally Posted by vid6639 View Post
They should really think seriously about getting the Sandero asap.
This early on in the Logan's Indian life? They should sell just those diesel engines instead off-the-shelf; very useful in engine transplants
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Old 18th December 2007, 00:33   #5
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Quote:
Originally Posted by BUSA View Post
This was sure to happen. Recently i sat in a Logan and i can understand why sales are decling, the car is absolutely basic and there is nothing called styling in it. Renault trying to sell models for 4Lacs is nothing less then sucide.
Its absolutely basic, but everything a 'common buyer' would want. The diesel is peppy enough, although not too exciting, generous space. Looks are average, but do we really care!

If only the diesel variant was priced much more sensibly, sales would have been good!
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Old 18th December 2007, 01:17   #6
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This Renault LOGAN is not a Politician that Indians dont have a choice to pick a good one its a car with many alternates it is only called a cheap car but as in India i dont think so its cheap even an accent Crdi or lancer diesel look at least 20 years more modern to Logan but still they tried to play this theme that India buy or you re denied ,times have changed we pay the most at least give us what rest of the world gets and u have to sell logan then plese sell it fully loaded diesel for under 5 lacks then u can call it value for money but not by taking it up to 6 + lacks


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Old 18th December 2007, 01:27   #7
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2 lacs off on the diesel version. Then it will sell. Or else it'll be pack up soon.
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Old 18th December 2007, 04:03   #8
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2 lacs off on the diesel version. Then it will sell. Or else it'll be pack up soon.
80000-1 lakh of the Diesel itself will do the trick.
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Old 18th December 2007, 07:56   #9
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Chennai BHPian Pugram owns a Diesel Logan, and he is very happy with it. I agree it is basic, that way what Indian car isn't basic?
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Old 18th December 2007, 07:56   #10
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yes its very basic.They projected that as a cheap sedan, but priced it high. Just for that extra boot, i dnt think indian people will pay lacs extra.... latest i10 has good features with airbags and abs priced alomost in tht range. I wonder if they will ever drop price bcs that may affect emotinaly the currnet holders.. Anyway, its M&M's call...
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Old 18th December 2007, 08:12   #11
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Originally Posted by Samurai View Post
Chennai BHPian Pugram owns a Diesel Logan, and he is very happy with it. I agree it is basic, that way what Indian car isn't basic?
Pugram is quite happy with his steed, recently he toured southern part of tamilnadu covering 720kms with just 33l of diesel, that works out to a whopping 22kmpl.

From my experience, trade pundits are not to be taken so seriously.

regards
tifosi.
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Old 18th December 2007, 08:21   #12
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IMHO the interior plastics could do with a major upgrade. That was my major grouse against the car.
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Old 18th December 2007, 08:33   #13
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If Renault wants to pump up sales, they should explore the taxi market and price it accordingly. The diesel mill efficiency and roomy back seat would make a fleet operater's dream come true. And as for it being "Basic" - The taxi driver won't care and neither will the passenger as long as it can get them from A to B.
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Old 18th December 2007, 08:46   #14
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Quote:
theMAG : They should sell just those diesel engines instead off-the-shelf; very useful in engine transplants
The best idea to promote Renault-M&M sales yet.
Quote:
Samurai : I agree it is basic, that way what Indian car isn't basic?
The problem with the Logan is that the price isn't basic, in line with the car itself.
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Old 18th December 2007, 08:49   #15
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I expected this to happen sometime. I still remember the day when there was stiff competition on a poll between the Esteem and the Logan on TBHP and a few folks were desperately trying to vote for the Logan just to outsmart the Esteem !!

Last edited by rr_zen : 18th December 2007 at 09:08.
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