The Indian venture of Renault and Mahindra & Mahindra has launched the no-frills Logan sedan in Nepal, a first step toward using the low-cost Indian manufacturing base for exports.

Mahindra Renault will sell the Logan through a local distributor in Nepal, Agni, which already distributes Mahindra vehicles and tractors, the Indian firm said in a statement on Aug. 20th 2008.

“Since its launch in 2007, the Logan has carved a distinct niche for itself in India … we are now introducing the Logan to Nepal, which has a rapidly growing automobile industry and is the first international market for MRPL,” Gerald Porcario, general manager for marketing, Mahindra Renault, said in the statement.

Mahindra Renault has said it will look at exporting the Logan to neighboring countries and some markets in Africa that have a right-hand drive. That would also help offset sluggish sales in India.

Sales of the Logan, which competes in the crowded mid-size segment, have fallen in recent months as higher fuel prices and rising interest rates have forced consumers to defer upgrades to bigger cars. Since the start of the fiscal year in April, Mahindra Renault has sold 6,001 Logan cars, a 26 percent fall from the same period a year earlier.

Renault is also in talks with Indian motorbike maker Bajaj Auto Ltd to build a low-cost car to take on Tata Motors’ Nano, scheduled for launch later this year.