Renault beefs up India venture with Mahindra

PARIS, Nov 9 (Reuters) French carmaker Renault said on Thursday it was expanding its existing joint venture with India's Mahindra&Mahindra Ltd to manufacture more models for the Indian market.

Renault chief Carlos Ghosn told a news conference that his company had signed a memorandum of understanding for a long-term partnership with Mahindra and that Japan's Nissan could join their partnership in the next four months.

''India is one of the fastest growing markets which offers significant opportunities for profitability,'' Ghosn said.

The agreement foresees a greenfield production site for 500,000 cars.

Renault and Mahindra already have a joint venture to build the no-frills Logan for the local market from 2007. Mahindra has a 51 percent stake in that venture. Renault owns a stake in Nissan.

Managing Director Anand Mahindra said Mahindra&Mahindra would sell other Renault models than the Logan in India.

REUTERS KR HS1330