The Hindu Business Line : Nissan Renault venture’s India plans on track

Bullish on India: Mr Colin Dodge (right), Executive Vice-President, Nissan Motor Co Ltd, and Mr Kiminobu Tokuyama, Managing Director and CEO, Nissan Motor India Private Ltd, and Mr Grahame Cornforth, Senior Vice-President and Director, Renault Nissan Technology and Business Centre India Private Ltd, Nissan Operations, at a press conference in Chennai on Thursday.

Our Bureau

Chennai, June 4 Nissan Renault Automotive India Private Ltd, the first joint venture between the global alliance partners Renault and Nissan, announced that its investment plans for India are intact, allaying fears of the project being called off due to effects of global slowdown.

However, Renault is suspending further investments in the project for now.

The joint venture company will stick to the committed investment of Rs 4,500 crore announced at the ground breaking ceremony a year ago.

Cars within a year

Addressing reporters after a visit to the factory site, Mr Colin Dodge, Executive Vice-President, Nissan Motor Company, said the superstructure of the plant coming up at the 640-acre plot in Oragadam, about 50 km from the city, is complete and the cars would roll out within a year.

Originally the plan was to build a 4-lakh unit plant with 50 per cent each for Renault and Nissan. But now with Renault suspending its part of the investment, the capacity is halved to 2 lakh units a year . “This is Plan B and we will go back to Plan A when Renault’s cash position improves,” he said.

Three platforms

The Chennai plant is designed to churn out three platforms – entry level car, hatch back and light commercial vehicles. It will start manufacturing Nissan’s new global entry car with a local content of 85 per cent. This will replace the Micra in the European market.

Besides catering to the domestic market, it will export 1.1 lakh cars to over 100 countries in 2011. Exports will increase to 1.8 lakh units in the following year. India will also be a major global sourcing hub for Nissan’s high volume vehicle platforms. About 20 vendors are setting up production facilities at the adjacent 160-acre vendor park.

Mr Dodge is bullish about the potential in India, which currently has about 50 cars per 1,000 inhabitants against 250 in Russia and 800 in the US. In order to tap the potential, the company has appointed Hover Automotive India to out source sales, marketing, after-sales and dealer development. At the launch the company will have about 30 dealers.

By 2012 Nissan will have nine models including five made in India. Currently Nissan has two products, X Trail and Teana, which are imported. Soon it will launch its sports car 370 Z. It has set a target to notch up a 5 per cent market share by 2012.

On the joint venture with Ashok Leyland to make light commercial vehicles, he said both the partners have frozen the products and the vehicle will hit the road in 2011. Manufacturing will take place partially at Ashok Leyland’s facilities and Nissan’s Oragadam plant.

Related Stories:
Renault may be prompted to revive Chennai car project
Renault puts Chennai plan in cold storage

More Stories on : Alliances & Joint Ventures | Cars

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page