No problem with Renault-Bajaj deal: Mahindra

Anand Mahindra, vice chairman, Mahindra and Mahindra (M&M), today said the company has no problem with its partner Renault of France joining hands with Bajaj Auto for a small car venture.

"Renault did not approach us for a no-objection certificate but we have no problem with its tie-up with Bajaj for the small-car project," Mahindra said on the sidelines of the India Economic Summit here.

Renault is conducting a feasibility study for a $3,000 small car project in partnership with Bajaj Auto.

The French firm already has a partnership with M&M to manufacture and sell its entry-level sedan Logan in India. Logan has been co-branded in India as a Mahindra-Renault product.

As per the current FDI norms, a foreign partner has to seek no-objection from its existing Indian partner to go ahead with a tie-up with another company in the country.

Renault had initially approached M&M for the small-car venture but the latter opted out of the project saying it did not fit into its portfolio.