French carmaker Renault said on Thursday it has shelved plans to enter Indian multi-utility vehicle segment in partnership with Mahindra & Mahindra, even as the two partners expect to finalise a marketing and distribution pact for the former's products in the country.
"We had a made a marketing study for a seven-seater vehicle. Unfortunately the response was not good, so we have shelved the project," Renault India Managing Director Sylvain Bilaine told reporters.
Renault and M&M had planned to bring the seven-seater MPV through their JV under which the French company's mid-sized sedan 'Logan' is manufactured and sold in India.
The MPV was displayed at the Auto Expo held earlier this year.
Bilaine said Renault has decided to go slow on bringing in light commercial vehicles to India.
"We are a prominent market player in Europe with our three products in LCV portfolio -- Kangoo, Trafic and Master. But these products are very different from Indian conditions," he said.
The company's plan was to look for 'potential partner', but now the plans are at 'ground level', he added.
At present, Renault is working on finalising the marketing and distribution agreement with M&M for all vehicles of the French manufacturers in India.
"We are trying to finalise the distribution agreement with M&M in the coming months. This will be for every passenger car coming into India, both produced from Chennai facility and imported," Bilaine said.
He said the current network of 104 dealers, which sell 'Scorpio' and 'Logan', would be expanded to distribute Renault cars rolling out of Chennai plant from 2010.
On the possibility of joint badging of Renault cars with Mahindra in India, Bilaine said: