As per the framework agreement, M&M will have a 51 per cent share in the joint venture while Renault will have 49 per cent. The JV will be called Mahindra Renault Ltd.
The project provides for production of 'Logan', developed by Renault, from the first half of 2007 at the M&M facility. The capacity of the factory for 'Logan' will be 50,000 cars per year.
The factory will offer a stamping shop, a paint shop with top quality pre-treatment and an assembly line specific for 'Logan'. The car will carry 50 per cent localisation from the beginning and will be marketed under the brand of Mahindra Renault.
Mahindra & Mahindra will use its dealer network to distribute the car in India.