Mahindra out of Car Joint Venture in Oragadam

Its official that Mahindra has pulled out of the Car Joint Venture in Oragadam. This is sad news for Chennai and Sriperumpadur where the much talked Rs 4000 crore plant was supposed to be setup. It would be interesting to watch if still Nissan and Renault would go ahead with the plant without an active Indian Partner.

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The chances of the same is very less considering the fact that both Nissan and Renault are pretty new to India.Even though Nissan vehicles are here for quite some time both dont have the manufacturing experience here. More over Mahindra was supposed to hold 50% stake in this joint venture and i think Renault and Nissan would find it tough to fill the gap left by Mahindra.

1 Comment

  1. K.R.Rangarajan

    It all started with a bang and ended in a whimper.Nissan-Renault may set up the company if it is found viable in the light of increasing purchasing power and demand for small cars persists.However in view of galloping fuel prices and slowing down of economies of the developed countries the project coming thru is doubtful.

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