Renault-Nissan to invest $320 mn in second India plant
22 February 2013
Renault-Nissan, the automotive alliance between French and Japanese companies, will invest ¥30 billion yen ($320 million) to set up a second plant in India, Japanese business daily Nikkei reported.
The second plant with an annual capacity of 2,00,000 units will come up at Chennai, where the alliance already has a unit, the report said.
The new plant will mainly produce entry-level models like Nissan's Datsun brand along with other low cost models from Renault that are under development, according to the report.
Nissan had, last year, announced plans to revive its Datsun model to meet demand for affordable cars in emerging markets. Nikkei had also earlier reported two new low-priced models from Nissan priced around 500,000 yen (about $5,360) being readied for the market.
Renault-Nissan is expected to launch 10 new models, including low-end models by 2016, to increase its market share in India to the projected 8 per cent.
The relaunch will see two new Datsun brands entering the market in India, Indonesia and Russia by FY'14. This will be followed by another round of launches by 2016.