Mahindra Renault

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Mahindra Renault

  1. 1. The Beginning Of A New Chapter In India’s Automotive Saga Vikas Tiwari Pradeep Verma
  2. 2. Mahindra & Mahindra Limited <ul><li>US$ 3 billion Mahindra Group </li></ul><ul><li>Set up in 1945 to make general-purpose utility vehicles. </li></ul><ul><li>World's fourth largest tractor manufacturer. </li></ul><ul><li>Production-1,70,000 in 2006. </li></ul><ul><li>Major Defense Supplier </li></ul><ul><li>Presence in key markets </li></ul><ul><li>M&M's alliance mantra </li></ul><ul><li>30000 employees </li></ul><ul><li>Main operating divisions – </li></ul><ul><ul><li>Automotive division </li></ul></ul><ul><ul><li>Farm Equipment division </li></ul></ul>
  3. 3. Renault <ul><li>Founded February 25 , 1899 by Louis Renault and his brothers. </li></ul><ul><li>France's second-largest carmaker and world’s tenth. </li></ul><ul><li>Products- Automobiles, Trucks and Buses . </li></ul><ul><li>Production :25,31,500 in 2006 </li></ul><ul><li>A group with industrial and commercial presence in 118 countries </li></ul><ul><li>Only vehicle manufacturer to have eight cars with the maximum five-star Euro NCAP rating. </li></ul><ul><li>First to produce Sedan Cars. </li></ul><ul><li>8 times winner of F-1 Constructor title. </li></ul>
  4. 4. Renault-Nissan Alliance <ul><li>Signed on March 27 , 1999 . </li></ul><ul><li>Represent more than 9.8% of the worldwide market. </li></ul><ul><li>5.74% for Nissan & 4.04% for the Renault group </li></ul><ul><li>With sales of 3,597,748 (Nissan) and 2,531,500(Renault Group) </li></ul>
  5. 5. Mahindra-Renault <ul><li>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. </li></ul><ul><li>A 51:49 joint venture </li></ul>
  6. 6. MAHINDRA-RENAULT-NISSAN <ul><li>3 way greenfield auto JV into Chennai. </li></ul><ul><li>Investment of Rs 4,000 crore. </li></ul><ul><li>4000,000 vehicles per year. </li></ul><ul><li>5000 direct jobs and 40,000 indierct jobs. </li></ul><ul><li>Mahindra group holding 50% stake and the balance held between Renault and Nissan. </li></ul><ul><li>Three way alliance is a reflection of changing world market. </li></ul>
  7. 7. STRENGTHS OF MAHINDRA <ul><li>Presence in key markets. </li></ul><ul><li>Extensive and well established network throughout India. </li></ul><ul><li>Well established production facilities. </li></ul><ul><li>Brand name </li></ul><ul><li>Extensive Experience of Indian Automobile Sector. </li></ul><ul><li>Ability to keep procurement and Manufacturing cost low </li></ul><ul><li>R&D </li></ul>
  8. 8. STRENGTHS OF RENAULT <ul><li>Expertise in engineering, manufacturing and adaptation to meet customer requirements </li></ul><ul><li>Innovative, safe and environmentally-friendly vehicles worldwide </li></ul><ul><li>Global reach </li></ul>
  9. 9. PROSPECTS IN INDIAN AUTOMOBILE MARKET <ul><li>India as a market has a lot more to offer than it did 10 year ago. </li></ul><ul><li>Easy availability of finance </li></ul><ul><li>Higher propensity to spend in Indian customers. </li></ul><ul><li>Accounting for over 75% of passenger car sales last year by small car segment. </li></ul><ul><li>Suitable to the requirements of Indian customers </li></ul><ul><li>Strive for customer service excellence and global competitiveness </li></ul>
  10. 10. DIAGNOSIS <ul><li>A win-win situation for both companies and for Indian customers </li></ul><ul><li>Improvement in M & M’s own utility vehicles </li></ul><ul><li>Long time can be a negative parameter </li></ul><ul><li>Consolidation to the strengths of both companies </li></ul>
  11. 11. THANK YOU

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