By NNN-Bernama,
Tokyo : Nissan Motor Co. and its French partner Renault SA held a ground breaking ceremony Friday at a new plant in Chennai, India, with an eye toward starting operations in 2010, the Japanese automaker said.
Renault Nissan Automotive India Private Ltd. , a fifty-fifty joint venture, was established with an investment of more than US$1. 1 billion (121.5 billion yen).
Quoting Shohei Kimura, managing director of the joint venture, as saying in a statement, the Kyodo News reported that: “The new project is a very tangible result of the strength and success of the Renault-Nissan Alliance.
“The Nissan-Renault alliance will produce vehicles for export and the local market for both Nissan and Renault, Nissan said, adding the new plant is expected to have an annual production capacity of 400,000 units”.
At the Chennai plant, Nissan plans to produce a family of models based on its new A platform, including the next generation of the Micra compact car, which is known as the March in Japan.
Nissan will cease production of the current model of the Micra in 2010 at its Sunderland plant in Britain.
Nissan plans to introduce nine models in the Indian market by 2012, including what it calls the ultra-low-priced car as well as a compact car and a light commercial vehicle, sport utility vehicles and sedans.
Five of the nine models will be locally built.
Along with China, India is seen as one of the most promising markets for global automakers at a time when auto sales are slumping in developed economies, particularly in North America and Japan.