India need not fear over the inking of the pact between Daimler and Renault-Nissan. The aim of the pact is focused on the European market rather than on domestic facility. The pact will involve small cars, LCVs and power trains and China alone will be brought to the fore as hubs for regional cooperation- Daimler and Infiniti of Nissan involving. India is not yet a potential destination for the car market, compared to China’s 14 million units. India, on the other hand, will be a source for low cost components for the partners.
The global companies see the quality and cost as the major factors constituting the Indian market. Daimler tried its best to bring in Chrysler to India but in vain. Rather it concentrated on Mercedes-Benz first which clicked well. Mitsubishi too tried with a small car for Asia under the shade of Daimler but the pact with Hyundai took Daimler to the fore with good business. The tie-up with Chrysler burnt the palms of Daimler. Renault contented itself with its Logan in India in a pact with M&M while Nissan-Renault tie-up will bring more business. Renault is chalking out its strategy to launch more cars from the Chennai unit. Hence Daimler has no role to play in the Indian business involving Renault-Nissan alliance.