Renault and Nissan plan on cashing-in on a new and fast-growing auto market in India. With last month’s release of the Tata Nano, India may soon be a new “China” where car manufacturers will find virgin markets for their products. Other car manufacturers could follow in the future, but Nissan and Renault will hit the ground running when the plant starts production.
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At 670 acres in size, the plant will be a joint venture between Renault, Nissan and the Tamil Nadu regional government of India. It will produce products under both Renault and Nissan nameplates, for export and the local market. The plant will start production in early 2010 and will output 400,000 vehicles annually. Apart from complete vehicles, the plant will also produce powertrains and will include a powertrain facility.
This is good news for the Indian labor industry as the new plant will generate more jobs. It will also mean more affordable vehicles for the Indian market. Nissan with Bajaj Auto is already planning on producing a car that will be more affordable than the Tata Nano. CEO Carlos Ghosn was quoted as saying that his companies (Renault and Nissan) will develop a Nano fighter. Let’s get ready to rumble India!