Renault and Mahindra Sign Memorandum of Understanding To Establish Greenfield Plant - VIDEO ENHANCED STORY

Move allows both companies to strengthen their position in the Indian passenger car market

PARIS - November 9, 2006: Renault and Mahindra have signed a memorandum of understanding to establish a longterm strategic partnership in India. Under the agreement, Renault and Mahindra would create a greenfield site with capacity of 500,000 units per year within 5 years, offering innovative products to their customers in India. Capitalizing on the existing joint venture with Mahindra to commercialize Logan in India from first half of 2007, this strategic partnership would present a win-win situation for both companies and of course for Indian customers.

Mr. Carlos Ghosn, President & CEO of Renault said: “I am delighted to announce the deepening and enlarging of our partnership with Mahindra in what I see as a great opportunity for Renault’s development in India. This gearing up of our presence in one of the fastest growing markets in the world is key to our commitment to international growth.”

CLICK HERE to watch video clip of Carlos Ghosn's comments on new alliance.

Mr. Anand Mahindra, Vice-Chairman & Managing Director, M&M, said, “The success of this partnership is scripted within the India growth story and Mahindra & Renault’s shared vision for its customers. It is a chemistry that we discovered when the Mahindra-Renault joint venture was born. Besides, the strengths of Mahindra and Renault will go a long way in making India a key global automotive market.”

CLICK HERE to watch video clip of Anand Mahindra's comments on new alliance.

A range of Mahindra as well as Mahindra-Renault products suited to the requirements of Indian customers will be manufactured at the new ‘greenfield’ production site under the direction of Renault and Mahindra. The production site will include a vehicle assembly plant, shared between the two partners. Renault also plans a powertrain factory. Production is expected to begin mid-2009, with an initial installed production capacity of 300,000 vehicles per year. The manufacturing site will be announced shortly.

The product range will be marketed by Mahindra-Renault and sold through the extensive and well-established Mahindra channel network throughout India. Partners will optimize production costs through economies of scale thanks to joint investment in plant and infrastructure, as well as purchasing synergies.

CLICK HERE to watch video clip of the Renault Twingo concept car.

CLICK HERE to watch a great video clip of the Renault's beautiful Nepta concept car.

• Renault will contribute its expertise in engineering, manufacturing and adaptation to meet customer requirements, and

• Mahindra will contribute its in-depth understanding of the Indian market and supplier base through years of market leadership.

Both companies have the same focus on product innovation and strategy; both strive for customer service excellence and global competitiveness. “Mahindra & Renault’s joint vision is defined, however, by more than just these factors. It is centered on our common wish for growth that will only come with making products to suit the customer’s needs around the world,” added Mr. Mahindra. “I’m confident in our balanced and fruitful cooperation to offer the best of Renault and Mahindra to Indian customers,” concluded Mr.Ghosn.

About The Mahindra Group

The US $3 billion Mahindra Group is among the top 10 industrial houses in India. Mahindra & Mahindra is the only Indian company among the top five tractor manufacturers in the world and is the market leader in multi-utility vehicles in India. It has a leading presence in key sectors of the Indian economy, including trade and financial services (Mahindra Intertrade, Mahindra & Mahindra Financial Services Ltd.), automotive components, information technology & telecom (Tech Mahindra, Bristlecone), and infrastructure development (Mahindra GESCO, Mahindra Holidays & Resorts India Ltd., Mahindra World City). With over 60 years of manufacturing experience, the Mahindra Group has built a strong base in technology, engineering, marketing and distribution. The Group employs over 30,000 people and has several state-of-the-art facilities in India and overseas. The Mahindra Group has ambitious global aspirations and has a presence in five continents. Mahindra products are today available in every continent except Antarctica. M&M has made strategic acquisitions of plants in China and the United Kingdom & Europe, and has 3 tractor assembly plants in the USA. Its global subsidiaries include Mahindra Europe Srl. based in Italy, Mahindra USA Inc. and Mahindra South Africa. M&M has entered into partnerships with international companies like Renault SA, France, and International Truck and Engine Corporation, USA. www.mahindra.com.