Can Nissan-Renault make a comeback?

Renault represented the Nissan Renault duo in India, by joining hands with M&M for its Logan. The JV happened in 2007 claiming a low priced car at the entry level sedan segment. the car was launched in both petrol (1.4 and 1.6)and diesel versions (1.5). The company had expected to sell an average of 2500 cars a month, but never crossed an average figure of 500 cars every month. When the industry had a boom last month with almost all players making growth, Logan was still in negative growth. Inspite of the JV with a leading automobile maker, M&M, who has an established network of dealers and service centres, the performance had led to a possible termination of the JV.

There is no one reason for the failure of the product. The product was claimed to be the cheapest in the entry level sedan segment which it never was (Courtesy: only 50% localised parts). This segment was dominated by Tata Indigo CS and Swift DZire. Also the car was a lot boxy, hwere there were sleek offerings from the market leaders and others like Hyundai in Accent and Ford in Ikon. Also the car was promoted as a low priced sedan for the entry level. All this resulted in the mismatch of the targeted segment and the positioning of the product.

Now Nissan has announced the entry to the small car market with Micra, giving three engine options and a price competing with other market leaders. Can the Duo make the offering right and win the mind and wallet of the Indian consumers?