Mahindra's Logan sales sluggish in May

Sales of Logan, Mahindra & Mahindra's only car, grew by a meagre 5 per cent in May over the comparable period last year in an overall booming market.

This was achieved largely on account of up to Rs 80,000 price cut in April 2010, a month when sales dipped to 303 units from 550 units in the same month last year.

As per the data with the company, Logan sales in May, this year, stood at 450 units compared to 427 units in the same month in 2009.

Mahindra also had a difference of opinion with its erstwhile joint venture partner Renault, a leading French car maker, over reducing the size of the car to improve sales.

The Indian auto maker, however, resorted to price cut on April 22, within a week of parting ways with Renault, which was against cutting the Logan size to less than four metre to avail duty benefits.

After separation, Renault has allowed M&M to produce the car under a licence agreement.

Consequently, sales improved to 450 units in May this year from over 303 units in the previous month that saw a decline from 351 units in March 2010.

When contacted, an M&M spokesperson said, "It will not be proper to compare the sales with May last year as there was no price cut in the year-ago month and sales were falling. The comparison should be done with April this year, when we cut the prices."

However, he said that the price cut was not advertised, indicating it could have resulted in higher sales.

Launched in 2007, 'Logan' has not been able to make its mark in the Indian market, selling just over 44,000 units since launch.

In 2009-10 its sales dwindled to just 5,332 units from 13,423 in the previous financial year.