Japanese auto company Nissan is setting up a diesel engine plant next to its current plant in Oragadam, Chennai. The plant will be operational beginning of next year, said Nissan Chief Financial Officer, Mr Sunil Rekhi.

The diesel variant of Sunny is expected to be the first to roll out of this plant. Currently, the diesel engine is imported from Europe for Nissan Micra. “We are looking at maximum localisation through this new plant,” said Mr Rekhi.

The Renault-Nissan joint venture is jointly investing in the diesel plant. The venture, formed in 2008, had announced a total outlay of Rs 4,500 crore for seven years. “We will invest that faster than 7 years.”

Capacity to go up

The current plant at Oragadam has a capacity of 2,00,000 units a year. This will go up to 4,00,000 next year.

“Nissan has huge growth plans for India,” said Mr Rekhi. Next year will see the launch of Sunny diesel and a couple of utility vehicles. Nissan will showcase the Sunny diesel at the upcoming auto expo in Delhi.

Last year, Nissan sold 13,000 units. The company had earlier announced a target of 40,000 this year. “We hope to achieve a minimum of 80 per cent of the target, given that the economy has taken a different turn now.”

Dealership

Nissan hopes to “more than double sales” next year. It is betting on Sunny diesel and improved dealership network to get there. Currently, it has 47 dealers. By the end of this year, Nissan hopes to touch 70 and double dealership next year, said Mr Rekhi, on the sidelines of a press briefing to announce a financing tie-up with State Bank of India.

SBI promises consumers auto loans at a rate of 11.25 per cent (floating) and 11.75 per cent (fixed) – “which are 75 to 100 basis points lower than the market offering of other banks.” The tie-up also offers loans to dealers.

Nissan also has financing tie-ups with HDFC, ICICI and Kotak.

Related Topics
comment COMMENT NOW