Nissan has sensed the muscle power of Indian technology in delivering the small cars and there is no second thought about converting the country to be the hub for compact cars. The company identifies a swift in the volume among countries of West and BRIC, and from the perception it is found by them that more potential is in the offing in India, China, Brazil and Russia. Nissan, though strong in Japan and Europe, sees a need for adapting to the demanding situation in BRIC region. Nissan has invested Rs2000 crore for the proposed plant near Chennai in a bid to create the compact Micra [images], an all-domestic car.
Slated for launch in July, the car is deemed to be the crowd puller for Nissan in India, Europe and other export markets. Further , there would be an entry-level car in association with Hinduja Group(maker of Ashok Leyland) , at a cost of Rs2.5 lakhs. This small car would find way to the export markets in another 3-4 years. India fills in the slot, similar to Thailand, for enhanced hub elements. The company is very much on the spirits that the investment cost is low, labor cost too is less and above all the components and parts are cheaper than Europe. Above all the car is quite coincidental for this domestic market.