Daimler, Renault-Nissan extend manufacturing alliance

Daimler and Renault-Nissan on Friday announced the extension of a manufacturing alliance, under which Renault will supply Daimler with 1.5-litre four-cylinder diesel engines for use in its Mercedes-Benz C-Class.

Mercedes in turn will supply its 2-litre four cylinder gasoline engine for use by Nissan's premium brand Infiniti, the two said in a joint press release.

Nissan has been granted a licence to make Daimler's 9-speed automatic transmission for use in Infiniti vehicles.

"This relationship is in its fifth year. Progress has gone well beyond our initial expectations," Renault-Nissan chief executive Carlos Ghosn said at a joint press conference.

Separately, French auto major Renault said it plans to enter the used car business in India next year, besides launching two new models, to make its presence felt in the market.

Renault will use its R&D Centre in Chennai to come up with products which are ''right for the country''. The company is targeting a market share of over 5 per cent in India.

Renault, which currently sells five models, including mid-sized SUV Duster, in India, had a market share of just over 2 per cent in the country last year. The Indian passenger vehicle market stood at around 2.5 million units last fiscal.