Mahindra&Mahindra have rationalized the prices of its slow selling saloon, the Logan. The company has slashed prices of the Logan in the range of Rs 27,000 to Rs 80,000 for its BS III variants, while the BS IV variants see a price cut in the range of Rs 24,000 to Rs 65,000. The new prices will be effective by April 26, 2010.

The announcement comes on the heels of the Indian company acquiring total ownership of the Mahindra Renault Pvt Ltd, a JV between Renault and Mahindra, of which the latter owned 51 percent stake prior to the buyout. The partnering companies had restructured their relationship a week ago, with Mahindra taking complete charge of the company. However, Renault will continue to support M&M and supply key components including engine and transmission for the Logan, through a License Agreement.

The top end diesel model, DLX will now cost Rs 5.65 lakh, ex-showroom Delhi as against the current price tag of Rs 6.45 lakh. While the fully-loaded petrol version will cost Rs 4.86 ex-showroom Delhi. 

Mahindra & Mahindra’s automotive division head, Rajesh Jejurikar, said the price cuts were the result of several factors including integration benefits in manufacturing and a favourable exchange rate. “The rationalisation of the Logan prices have been made so to provide a better value proposition for our customers. All the significant features of the Logan are now available in the market. Mahindra remains committed to our customers and to the success of the Logan,” he added.

With the new structure, M&M will be responsible for the management of the Logan in the Indian market. However, the saloon will continue to bear Renault name and logo till the end of this year, and over the transition period of 18 months, M&M will rename the car and would carry only the Indian company’s logo.