Renault setting up JV with Nissan in Tamil Nadu; eyes small car deal with Bajaj

22 February 2008

Mumbai: French carmaker Renault and Japan's Nissan will jointly invest Rs4,500 crore to set up a greenfield manufacturing facility at Oragadam, near Chennai.

The two auto majors today signed a memorandum of understanding with the Tamil Nadu government for setting up the proposed unit in which both Renault and Nissan would have 50 per cent stake each.

Renault executive vice president (products, plan and programs) Patrick Pelata and Nissan executive vice president (corporate and product planning) Carlos Tavares signed the MoU with the Tamil Nadu government

Renault and Nissan had earlier signed a tripartite joint venture with Mahindra and Mahindra (M&M) for the proposed plant. M&M, however, pulled out of the venture, saying it did not require the additional capacity being planned at Chennai and would rather expand its existing facility in Chakan near Pune.

Mahindra would have a majority 50 per cent stake in the plant while Renault and Nissan would have held an equal 25 per cent stake each.

Mahindra currently manufactures and markets its mid-size sedan Logan through a joint venture with Renault.