Mahindra and Mahindra will buy out its joint venture partner Renault under a restructuring plan for their 51:49 joint venture, Mahindra Renault Pvt Ltd, which manufactures the Logan car in India.
The two parties signed an agreement, earlier this week, in principle allowing M&M to take over the operations of the company. Renault, however, will continue to support M&M and the product through a license agreement and supply of key components, including the engine and transmission, an M&M release said.
MRPL will become a 100-per cent Mahindra group-owned company after the buy-out. M&M will be responsible for the management of the Logan in the Indian market.
M&M will continue to use the Renault name and logo on the Logan till the end of this calendar year.
Over the course of a transition period of about 18 months, M&M will rename the car to a Mahindra-owned brand name and the car will then only display the Mahindra logo.
M&M will have the option to make modifications to the car in line with customer expectations and further localise production to reduce costs.