Renault will set up its own dealerships in the country before bidding adieu to their 4 year alliance with Mahindra. The number of cities that Renault will open its own dealerships is still under review as Mahindra dealers have also indicated their willingness to open separate dealerships. Mahindra-Renault have 100 dealerships, which sell the Logan. If Renault were to go independent, the dealerships would continue to sell Logan.
Renault has made its intentions very clear of launching its own brands and setting up an independent distribution network by 2011. Due to the poor performance of the Logan (sales hovering at just 500 units a month), the JV with Mahindra is bound to break. Mahindra-Renault has been forced to cut down production at their Nashik plant, which has a capacity to make 50,000 Logans anually.
