Nissan’s low cost car (Rs2.5 lakh) may roll off from the plant in India by way of a JV, said the CEO of Nissan. To counter Maruti Alto, the company intends to push up huge volumes, since the cost may attract more customers. The proposed JV may include the Hinduja group’s Ashok Leyland for such LCVs. Other possible companies for the JV are yet under consideration, he added.
Nissan is doing its business in India with more than one partners in its JVs. Its own product Micra is ready for launch in July to come off from the Chennai plant. The partner for the Chennai plant is Renault but the marketing of the cars will be through Hover Automotive India. Nissan is on the tri-JV with Renault and Bajaj for a small car project.
The proposed entry level car will lie between ULC and Micra, and will have a new manufacturing facility to meet the large demand. The plant, in all possibilities, may not be located in Chennai he affirmed. The options are varied for the company for the location. The Chennai facility has the production capacity of 4 million units per year and is shared by both Nissan and Renault for their own products, in addition to the JV.
The Chennai facility will be utilized by Nissan for its Micra, a new sedan to come off in 2011, a multi-purpose vehicle and another new one. To sustain the dealer network for marketing the cars, Hover is expanding its activity to 80 by 2013 for dealing at least 9 models, which might include 4 imported brands.