Renault-M&M: Both plans to set up separate dealerships

Renault ' a French automaker terminated his four year alliance with Mahindra and Mahindra (M&M), and plans to set up dealerships on its own, and same plans are of M&M.

Mahindra and Mahindra is one of the India's top sport utility vehicle (SUV) makers.

As of now the Renault is in conversation with M&M over Mahindra Renault (MRPL) ' a 51:49 JV on the differences over pricing and engineering issues, as said by the people familiar with the company plans.

MRPL has 100-odd dealerships, which sell their low-cost mid-size sedan, Logan, across the country. If Renault go independent then also MRPL dealerships would continue to sell Logan, said both.

However, MRPL has been forced to cut down production at its Nashik plant, which has a capacity to make 50,000 Logans.

The number of cities that Renault will open its own dealerships is still under review.