Nissan and Renault to Build $1.1B Greenfield Plant in India

22 February 2008

Renault and Nissan have signed a Memorandum of Understanding (MOU) with the government of Tamil Nadu (India) confirming the development of a €780 million (US$1.14 billion) greenfield integrated automotive plant located in Oragadam, near Chennai in the state of Tamil Nadu.

The plant, a 50:50 joint venture between the two companies, will have an installed capacity of 400,000 vehicles per year. The project will provide vehicle production for each carmaker, plus a powertrain facility.

Production is expected to start in the beginning of 2010. The plant will produce a wide range of products for both partners, suited both for the Indian market and for export (Nissan mainly).

Renault has been selling the Logan sedan in India since May 2007 with local partner Mahindra & Mahindra. As of end of January, 2008, the Logan has captured 12% market share in the C segment with more than 20,000 vehicles sold since launch, placing it third in the segment.

Nissan recently concluded a Master Cooperation Agreement with Ashok Leyland and agreed to form joint venture companies for development and production of light commercial vehicles (LCVs) and LCV powertrains. For the Renault-Nissan Alliance, India represents a strategic market with high growth potential in numerous segments.