With sales falling sharply, Auto maker Mahindra Renault Pvt. Ltd has scaled back its production of Logan sedan by almost 50%. With the new move, the car maker will produce about 1,000 Logans at its Nashik plant in November, compared with the average 2,500 units a month.

Mahindra Renault, a venture of India’s biggest tractor maker Mahindra and Mahindra Ltd and French auto company Renault SA, had invested Rs700 crore in the Nashik facility and had initially aimed producing 50,000 cars a year. However, the sedan’s sales have been steadily declining this year as an economic slowdown and high interest rates kept customers away.

Though some car makers have shut production for a week in December for scheduled maintenance, the move by the company is specially to be noted as scaling back by as much as 50% is rare.

However, the heartening news is that Mahindra Renault is looking at different ways to drive sales. Vendors revealed that it is offering to sell the Logan to its suppliers and business associates in 35 cities at a 10% discount. The offer is open for its 1.4 GLE, 1.6 GLX and 1.6 GLS models in the entry- and mid-segment range.

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Posted by Nilakshi Handique on 8 November, 2008 2:07:40 PM IST #