Renault, Nissan Break Ground for New Plant in India; 400,000 Units/Year

7 June 2008

Renault Nissan Automotive India Private Limited (RNAIPL) broke ground on its new passenger vehicle plant in Chennai, India, expected to begin operations in 2010. The facility will have an annual production capacity of 400,000 and will produce vehicles for export and the local market for both Renault and Nissan.

A 50:50 joint venture between Renault and Nissan to manufacture passenger vehicles, RNAIPL represents an investment of a minimum of Rs 4,500 crore (€780 million / US $1.1 billion).

Renault plans to produce several cars on the Logan platform and on other platforms as well. Renault is currently developing a product range targeted at the Indian market. Nissan will produce a family of models based on its new A-platform, including the next generation of Micra. India is one of the five leading competitive countries (LCCs) to produce the new A-platform models. The development of a competitive A-platform is one of several business breakthroughs announced as part of Nissan GT 2012, the company’s new five-year business plan.

Renault has a 49:51 joint venture with Mahindra & Mahindra for the production of the Mahindra-Renault Logan in Nashik and its distribution via the Mahindra network. Sales of Logan in India have totaled approximately 29,000 units since it went on sale in May 2007. Renault also has a satellite design center in Mumbai called Renault Design India, the first local design operation of a Western auto manufacturer in India.

Nissan plans to introduce nine products in India, ranging from the ULC (ultra low cost) car, a compact car and light commercial vehicle (LCV) to higher-end SUVs and sedans, including five locally built products by 2012. Three LCV companies have been created with Ashok Leyland for manufacturing, powertrain manufacturing and technology development.