Nissan seeks the blessings of Renault

The Japanese car maker Nissan’s seeking for the financial leisure from Renault is aimed on rolling down the local made small car in 2010. The MD&CEO of Nissan said that the company is hopeful that Renault would reconsider its decision to freeze the financial constraints. Depending upon the outcome of the financial crisis, Renault is likely to invest at the Oragadam plant for production and Nissan is planning for global small car.

Nissan is scheduling for nine models from its Indian origin of which five will be from Chennai plant in a bid to pluck 5.5 % market share. The share between Nissan and Renault on 50:50 (for Renault-Nissan Automotive India Pvt.Ltd) materialized in 2008 for making vehicles of both brands in India. The venture was to make 4lakh cars a year in 7 years with an investment of $1140 million. The CEO of Nissan expressed the company’s gratitude for recognizing a European-Asian alliance and hoped the revival from Renault.

Nissan is to import 4 direct top-end models from Japan and make 5 from the Indian plant. The company is shifting its MICRA from UK to India during 2010 whereby Chennai plant will be a hub for the global compact car. The cars will be exported to Europe from China, India, Thailand and Mexico. Nissan’s target for 2013 is 10 lakh, from the current capacity of 2lakhs, with the trial production already started in November.

The first of this kind is slated for the display at Geneva Motor show in 2010. As assured Nissan will launch its export base at Ennur and the Chennai plant will start export from the 2H of 2010. By this arrangement Nissan would export 110000 units covering more than 100countries (30 European countries) apart from Africa and West Asia. This will be gradually increased to 180000 units per year, said its CEO.

The other JVs including Nissan-Renault-Ashok Leyland (at an investment of $575 million) the operations may begin in 2011-12. By keeping aside the earlier plan to have a unit, the Ashok Leyland platform and Nissan-Renault plant will be used for manufacturing LCVs from mid 2011. In a vain to match Tata’s Nano the JV along with Bajaj has planned for a small car at $2500 million and may roll on the Indian roads by 2012.

For hybrid and electric modes, the JV had earmarked $4billion to initiate EVs for global market. In this connection an agreement with governments have already been made and the cars will be ready by next year. The JV is expecting a clearance from the Indian government for this proposal.

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