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In april 2007,Logan a successful mid-size, no-frills saloon, was launched in India. The
Logan had debuted in Romanian subsidiary S.C. Automobile Dacia SA(Dacia). The
Indian version of Logan was launched through a joint venture between Renault and the
Indian automobile major Mahindra & Mahindra having a company share of 49% and
51% respectively. The Indian Logan was the first right-hand version of the car.

In India, the Logan was assembled at M&M¶s plant in Nashik, Maharastra. M&M had
also announced that it would invest $950 million to build a new factory in Chennai in
southern India.

Renault decided to design a new car that could be sold in the developing parts of the
world-a market that was often not considered significant by the major auto
manufacturers. The Logan¶s design and development had been meticulously planned
around a targeted sale price of 5,000 Euros, so as to affordable to customers in
developing countries. This made the Logan the cheapest car in its class when it was
launched.

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Renault was primarily an assembly operation, and procured components like engines,
tires, radiators, gears, steel, and electrical equipment from component suppliers to
assemble the cars. In addition to passenger cars, Renault manufactured taxicabs, buses,
and commercial cargo vehicles. As the three worlds biggest car market Western Europe,
The US and Japan were saturated so a diversification in the market was identified.

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In the mid-1990s, Renault, under the direction of the then chairman and CEO Schweitzer,
made a strategic decisioncto expand its presence in markets outside Western Europe. It
planned to achievecof four million vehicles across the group by 2010.The project received
an impetus when Renault acquired Dacia in 1999. Dacia was a well known, if slightly
outdated brand in Romania. As a part of the acquisition, Renault got ownership of
Dacia¶s factory at Mioveni, in the Pitesti region of Romania. The factory was obsolete
and in need of upgradation, and Renaults invest heavily to bring it up to a level of
efficiency and comparable to Renault¶s other manufacturing sites

With X90, Renault wanted to create a car for the people in emerging markets who have
never owned an automobile. It estimated that around 80% of the world¶s population
would fall into this category. The company discovered that customers in this markets
were usually well educated about the vehicles available in western market s but usually
could not afford to buy cars.
The goal therefore, was to develop a durable, economical car, with international features.
There were to be no compromise on safety standards and the best of Renault¶s technology
was to be incorporated. The car also had to have a lot of passenger and cargo space.
Renault decided to sell the X90 lineup under the new brand name µLogan´-a computer-
generated name with no negative connotations in any language.

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Logan was a car designed to strict specializations. The designers were given clear
requirements with regard to the size, design, and most importantly, the cost of the car.

Renault approached the development of the Logan as a completely new project.

Typically, low priced cars were stripped down versions of popular cars. Sometimes
manufacturers also remodeled outdated versions of car sold in developed countries.

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Because the Logan was meant to be sold in markets in developing countries, the cost of
the car was a critical factor in the design. The Logan was a µdesign to cost¶ project. The
complete design of the car and its elements were finalized keeping in view the targeted
sale price of 5,000 Euros.

The Logan did not have to stand out in a crowd or make heads turn, but it had to provide
the best possible features at the designed price point. Therefore, it was designed as a
modern car stripped of costly design elements and superfluous technology .Costs were
also controlled by keeping the structure of the Logan simple. Most of the features that
were purely cosmetic were eliminated. The Logan was designed to be a functional car,
and therefore placed more emphasis on utility and safety than authenticity. The design of
the car was kept basis with straight lines and angles and very few curves. The designers
realized that making the design complex would increase the cost of manufacturing and
also lead to quality issues

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Logan is a five siter saloon car designed to get maximum interior space. The
development of the car was made with the consideration of the developing countries
environment. So a fair ground clearance and lower quality fuel engine was incorporated
in the car. For logan both the high end and economic varient was available in the market.

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The company invested a few while promoting the car Logan as there was a normal
demand for low cost car in the market. The customer understood the µvalue for money¶ so
there was a positive growth for logan across the countries.

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With a business strategy the organization aims on the results, it wants to achieve in its
environment. On the competitive advantage that the business want to achieve in order to
realize the wanted competitive position in its environment.

The Logan had debuted in Romania in 2004, before being introduced in several new
markets, especially in developing parts of the world. Although the Logan had originally
been conceptualized with emerging markets in mind, the car¶s success prompted Renault
to begin selling it in the markets of Western Europe as well.

The Logan was Renault¶s world car. As of mid-2007, it was being manufactured in seven
countries ± Romania, Russia, Morocco, Colombia, India, Brazil and Iran- and sold in 55
markets. The Logan had been conceptualized at a point in Renault¶s corporate history
where the company had made a strategic decision to explore markets beyond Western
Europe, the United States, and Japan.

Consequently, Renault decided to design a new car that could be sold in the developing
parts of the world- a market that was often not considered significant by the major auto
manufacturers. The Logan¶s design and development had been meticulously planned
around a targeted sale price of 5,000 Euros, so as to be affordable to customers in
developing countries. This made the Logan the cheapest car in its class when it was
launched. Eventually, the Logan became so popular that there was demand for it even in
Western Europe, and Renault was able to launch a slightly modified version of the car in
that market with some success.

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The car has helped Renault strengthen its position in the global auto industry.

Logan was a car designed to strict specification. The designers were given clear
requirements with regard to the size, design, and most importantly, the cost of the car.
Given that Logan was intended to be a world car, Renault also had to ensure that
requirements of all the markets were met.

Renault approached the development of the Logan as a completely new project.

Typically, low price cars were stripped down versions of popular cars.

Logan was to allow Renault to reach a new customer range with a product that packs the
bare essentials without resorting to using a car that¶s been out of production for several
years. Renault had to start from scratch on the first vehicle developed by Renault for sale
initially outside Western Europe, and a program in which financial consideration were
key.

Because the Logan was meant to be sold in markets in developing countries, the cost of
the car was critical factor in the design .The Logan was a ³design-to-cost´ project. The
complete design of the car and all its elements were finalized keeping in view the
targeted sale price of 5,000 Euros.

The Logan did not have to stand out in a crowd or make heads turn. But it had to provide
the best possible features at the designated price point. Therefore, it was designed as a
modern car stripped of costly design elements and superfluous technology.

Notwithstanding potential competition, analysts agreed on the fact that the Logan had
definitely made a mark on the global automobile industry .According to them; the Logan
was the closest that any company had come to making a successful world car.

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In april 2007,Logan a successful mid-size, no-frills saloon, was launched in India. The
Logan had debuted in Romanian subsidiary S.C. Automobile Dacia SA(Dacia). The
Indian version of Logan was launched through a joint venture between Renault and the
Indian automobile major Mahindra & Mahindra having a company share of 49% and
51% respectively. The Indian Logan was the first right-hand version of the car.

In India, the Logan was assembled at M&M¶s plant in Nashik, Maharastra. M&M had
also announced that it would invest $950 million to build a new factory in Chennai in
southern India.
Through the strategy Renault minimize the business risk in the new market also got a
well established brand name to promote their product and also got a guide to guide them
with the market dynamics in the Asian market. On behalf of the parent company M & M
is investing money for production so they also got a benefit of investment.

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Logan was a car designed to strict specifications with regard to the size, design, and most
importantly the cost of the car. The car was designed to reach a new customer range the
design of the car was not a stripped down version of some popular car. The Logan was
designed from a complete new angel keeping in view of the target markets that is the
developing countries.

The technology, engine, gearbox and manufacturing standards for the Logan were all
developed by Renault at its techno center in Paris. Logan was to be a simple notchback
saloon in the subcompact/supermini class that would combine utility with durability. The
car was based on the Renault Nissan Alliance¶s B platform which was also shared by
other car of Renault Nissan such as Clio, Nissan cube, Nissan Micra/March this allowed
the Logan to share tooling and manufacturing with other Renaults Cars.

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The parts of the car was borrowed from other car models of the Renault because they
were already tried and tested and Renault would not have to make additional investments
in designing and testing new components and in tooling Renault used its proven and
reliable 1.41 and 1.61 petrol engines to power the car. The engine compartment layout
and the electronics on the model were similar to those Clio, and the Twingo. This
allowed the Logan steering system, rear brakes, door handles, steering wheels, steering
column stalks, and the instrument panel to be based on Clio. The gear box came from
another model Megane and the Laguna. The front suspension was again borrowed from
the Clio and the rear suspension was based on the Renaults platform B cars. The
suspension system of the car was modified slightly to give the car good ground clearance.

The target sale price of Logan was 5000 Euros keeping in view of the target market.
Renault achieved considerable saving in cost by manufacturing the Logan at Dacia¶s
Mioveni Factory located at Romania. As Labor and production costs in Romania was
considerable lower then in western Europe also Renault sourced most of the production
material locally which also contributed to lower cost. Also in the factory very few robots
are used in the production process that also took the advantage of the low labor cost and
also eliminated the need for heavy investment in the factory. Robots are used for the tasks
that required extreme precision. Almost 65% of the Logan¶s components were made in
Romania. The engine and other critical part were manufactured onsite in the factory. Also
the suppliers of the Renaults moved to Romania that also contributed in keeping the cost
low.

The cost of the car was also kept low by designing it very simple most of the features that
were purely cosmetic were eliminated the design of the car was kept basic with straight
lines and angles and very few curves. Although the basic features of the Logan were
borrowed from other Renault¶s car, the designers reduced the number of components for
the model by more then 50%. For e.g. the Dashboard of the Logan was a single injection
model piece, the windscreen of the Logan was designed with a simple curve instead of
double curve all this lead to the reduction of cost. The parts of the Logan was made in
symmetric, to increase the versatility and thus lower the cost for instance the left and the
right rear view mirrors are identical that resulted in a saving of $3 per car.

The car was completely computer designed by a design team of 40 -50 members headed
by Gerard Detourbet. This eliminated the need to build the prototypes after the design got
finalized using digital mockups the car went directly into production that saved Renault
$40 million during production.

The company has compromised on safety aspect of the car as Logan was subjected to
safety and impact tests by the EuroNCAP as well as several independent bodies in
Europe. The car received a rating of 3 Star in the test for adult occupant safety and child
protection, and a 1 star rating for pedestrian safety. These rating were quite low as
compared to other cars.

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While making the car the aim and the objective was very clear to the company what
indeed bring success to the company. Renault made it very clear that the car would be
low cost saloon car with no compromise in the basic need and safety. So one hand they
made it affordable to the mass customer and on the other hand they kept the security
aspect and the environment condition in their mind. Some customer do argue that some
features are not incorporated in the base model like air condition and power steering but
those are add on features and there is always a provision to incorporate those features. So
when the question of compromise comes there is nothing like any aspect which is
compromised while developing the Logan.

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This design to cost approach made the Logan a huge success across the globe. This
approach helps Logan to be a low cost car. While developing a product if priority is
identified (like basic need and safety for Logan) and the cost of the production is targeted
before then the company can practically see the profit margin of the product. As a result
for Logan there was no huge promotional activity involved as it is already promoted
through its feature and price. So we can conclude that design to cost is a good method to
use in developing new products.

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1.c Base price was low and affordable to mass customer.

2.c The safety needs were up-to the global benchmark.
3.c The brand name Renault.
4.c The wide variant (base, economic premium class) availability.
5.c Product development while keeping in mind the environmental condition.
6.c Market diversification.
7.c Timey availability across the globe.

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1.c The looks were not like the competitor¶s car on the same segment.
2.c Some basic features like air condition, power steering were no there in the
base model.
3.c Not focused towards premium customer where as the competitors of the
same segment targeting the upper income people.
Though there are few points which few customer felt as a shortcomings
but still there is always a positive growth rate in terms of sales and the
shortcomings in the feature is considered to be add on feature for Logan
which any-time could be incorporated in the car. So as such there is no
such primitive shortcommings in the car by which it has positioned and
targeted its customer.

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-c A positive drive for auto sector. The Union Budget 2010 or the Aam
Aadmi Budget, as christened by the Finance Minister, seeks to sustain
 demand in the economy by increasing the disposable income in the hands
of the aam aadmi. The Government has done a balancing act of sustaining
growth on one hand and managing the fiscal deficit on the other.c
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1c Specialized groups to boost auto sector. The Centre has formed three
working groups to ensure that its ambitious Automotive Mission Plan
(AMP) remains on track despite the slowdown in the automobile sector.
The groups, including experts from industry and academics, would be
advising the Centre on finance and taxation, HRD and R&D, fuel emission
and other infrastructure issues facing the sector.c
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4c Excise cuts in budget fuel gas into auto sector. Automobile manufacturers
today reported an impressive growth in sales during April, showing signs
of recovery after the excise duty cut announced in the budget. Leading the
growth in the car segment, country¶s largest carmaker Maruti Suzuki India
witnessed a healthy 22 per cent increase in sales.c
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So we can see a positive response from the Indian government towards the
automotive sector which is a great hope for the successful car
manufacturer like Renault and Mahindra. So from the financing point of
view the future prospect is quite promising for popular brand like Logan.
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5c In January, Mahindra Renault and Nissan announced plans to establish a
400,000 unit production site near Chennai which will involve an estimated
investment of Rs 4,000 crore over a seven year period. As the Indian car
market is growing at a pace of 10% year on year so there is a huge
potential to market the product. For any car manufacturer this would be a
lucrative offer to market its product in Indian market and as an established
brand Logan has a great future ahead.c
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6c Ghosn (CEO of Renault) said that there will be no cannibalization, no
confusion between the two brands and their approaches. In the future,
products from Renault other than the Logan that fit India would be
considered. c
7c The company coming up with new models and variants to boost up the
sales with the name new collection Logan sporty variants. The car is also
lunched in Nepal fuel as natural gas (CNG). Also Renault and Mahindra is
planning to export the Logan to neighboring country like Srilanka and
Nepal. So for Logan there is a blooming and promising prospects waiting
in future.c
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In the same segment the main competetors of Logan are..

com petetor analysis

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Country like India is price sensitive market standing there we can see the sedan/saloon segment
car price range of different company. And when the big car market( the US, Europe, Japan) is
about to saturate there the Logan is developed focusing on the developing nations, where price is
a sensitive issue. So in terms of competitive analysis we can expect a bright future of Logan
waiting for the company.

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