Renault-Nissan to continue with multi-partner strategy for India

Despite the furore over the strained relationship among the partners in JV Renault-Nissan is set to go ahead with the pact. Renault owns 44% in Nissan JV and it has some other pacts in India- with M&M for its Logan, with Bajaj for a proposed new small car and with Ashok Leyland for LCVs, powertrains, R&D and a prospective small car. In addition it is in JV with Hover Automotive for marketing. Following the dip in sale of Logan, Renault had a second thought over partners for Indian business.

But the CEO said there will be no disturbances in the existing JVs but will continue to have varied business with different partners. The proposed small car project with Bajaj- Nissan alliance will materialize, he added. Renault is deeply mulled over the poor show of Logan in India through M&M. now the position is to regain its form and popularity he said. The current sale volume of Logan in India is just 400 units a month. With the final decision yet to be arrived on this Logan, steps are taken for reviving the car with disposition.

The JV with Ashok Leyland will bring out two products of which one will be from Ashok Leyland from the Chennai plant before 2012. The other would be from Nissan plant in Oragadam near Chennai which will roll out the production of Micra from this May. The initial production capacity of this plant will be 2 lakh cars and by the time it reached full capacity, (in 2015) it will be 4 lakhs. 50% this 4 lakh units would be allocated for export, he said. He asserted that Micra will be unique in offering features that are worth noting and that too at low price.

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