Renault and Nissan today reached an agreement with Tamil Nadu government to build a plant in Chennai. The $1.0 billion car plant will have a capacity of 400,000 cars a year. Both Nissan and Renault will have equal stakes in the project. The integrated facility includes an engine and powertrain plant, also with a capacity of 400,000 units. The 400,000-unit vehicle capacity will be divided almost equally between the two companies.The announcement comes a month after Mahindra & Mahindra Ltd., India’s largest sport-utility vehicle maker, pulled out of a venture with Renault and Nissan, leaving them without a local partner. The plant will make its first car by 2010 and will manufacture four models, Nissan spokeswoman Pauline Kee said. Nissan plans to sell 100,000 cars in India by 2012.
Renault – Nissan small car:
Nissan has four models in the pipeline for the plant and is developing an A-segment entry-level car, said Colin Dodge, senior vice president, general overseas market operations. Obviously, if you want to be in India you have to have a compact car,” Dodge said. Small cars make up more than two-thirds of sales of passenger vehicles in India, which are expected to nearly double to 2 million units by 2010.