the three-way alliance between Nissan, Renault and M&M
has been formalised. The combine today announced a JV
to set up a greenfield automobile plant in Chennai at
a total cost of Rs4,000 crore. Production would start
as early as the second half of 2009 and the plant would
reach a peak capacity of 400,000 units per annum within
seven years after initial production.
since M&M and Renault announced their JV to build
a new plant in India, it was speculated that Nissan
would join the alliance at a later stage. Nissan had
dropped its earlier plants to set up a new Indian plant
in partnership with Suzuki and had stated that the company
is studying the merits of joining Renault and M&M.
Renault owns 44 per cent of Nissan which in turn holds
a 15-per cent stake in the French automaker. Both companies
are headed by Carlos Ghosn as CEO.
Chennai plant would build passenger cars for all three
partners under their respective brands. The unit would
also make transmission systems for Nissan and Renault.
M&M would hold a 50-per cent stake in the venture
while Nissan and Renault would hold the rest.
no details have been announced, it is expected that
the first cars to roll out would be variants of the
low-priced Logan sedan. Renault and M&M have a separate
JV to manufacture and market the Logan in India and
the car is expected to hit the market next month. Future
variants of the Logan may include a hatchback and a
multi-purpose vehicle or a station wagon. Renault may
look at assembling some of its other models like the
Clio hatchback, Megane premium hatchback and Laguna
sedan from semi-knocked down (SKD) kits.
is likely to utilise the Chennai unit to produce the
next generation of SUV model Scorpio. It is the best
selling mid-priced SUV in the domestic market and is
finding increasing acceptance in overseas markets. M&M
has plans to introduce the model in the highly competitive
US market and has already finalised a distributor. M&M
may also build its under-development UV model, code
named Ingenio, at the new plant.
may assemble cars at the new plant for both domestic
as well as export markets. The company may look at expanding
its vehicle sourcing from India beyond the existing
deal with Suzuki for 50,000 units per annum, to be assembled
by Maruti, for the European market. Nissan may also
look at assembling some of its small car models like
Moco and Tiida for the domestic market. Nissan currently
sells only one model - the X-Trail SUV - in the country
and is said to be readying a sedan model - the Teana
- for an end-2007 launch.
was selected as the location for its well developed
automotive and components industry, high education levels
in its workforce and its overall infrastructure including
its port facilities, an official release said. Other
global automakers like Hyundai and Ford already have
large manufacturing facilities near the city while BMW
is setting up an assembly unit there.
release added that Renault will contribute its expertise
in engineering, manufacturing and adaptation to meet
customer requirements while Mahindra will contribute
its in-depth understanding of
the Indian market and supplier base as well as manufacturing
through years of market leadership. Nissan will contribute
with worldwide export opportunities and manufacturing
technologies, the release stated further.