Nissan-Suzuki pact will not be disturbed by the entry of VW. Nissan is getting the Pixo from Maruti Suzuki as the contract is till 2012. However, the deal pact with Suzuki and Volkswagen is on the air for small car project. The cars are to be slated for the European market, under the monitoring of VW. Nissan is not in the small picture in Europe as of now. The European market is growing fast towards small and compact car and Maruti-Suzuki’s Alto is marketed as Pixo in Europe by Nissan.
VW got 20% stake in Suzuki for $2.5 billion for improving its base in small car in India and China. If VW becomes vigorous in small car then it would hit the prospects of Nissan’s market against VW’s Lupo, a compact car in Europe. The company official is yet to make the confirmation about the possibilities. Maruti Suzuki thinks in other way, that Nissan has no other go than to continue the contract for small car of Pixo. He said that the deal with VW will not based on the concept of Alto.
Nissan has been in the good stint under this agreement as the small car from Maruti Suzuki has fetched decent business to it. Marurti has been in the recent limelight following its recall of 1 lakh A-Star for fuel leakage. But Nissan has redoubled its agreement for 54000 units from 30000 units in this financial year. If VW thinks in other terms then the tussle may be rigorous between Nissan and Suzuki. VW sees the deal as an easier than to invest a lot for the entirely new plant. Nissan has its own fortune with its new small car, a 4-door compact hatchback made from its Chennai unit. The car will see the domestic roads in this May and be exported to Europe later.