The Renault-Nissan alliance may invest 320 million Dollars (Rs 1741 Crore) to expand its Indian operations in a bid to take advantage of the growing demand for low cost cars in the region.
The alliance is looking to construct a second plant near its existing factory by the end of 2014 and aims for it to have an annual production capacity of 200,000 units. The current facility has an annual capacity of 400,000 units. The new plant will produce Nissan’s Datsun models as well as Renault’s low cost cars. The Renault-Nissan alliance had announced last year that it was reviving the Datsun brand to make low cost cars for emerging markets like India, Indonesia and Russia.
It would launch the first vehicle in January 2014 and would build the cars specific to each market and not on any global platform. The high level of local production for the cars means that they will cost less, should be relatively easy to maintain (majority local parts= spares that cost very little) and will be quite fuel efficient (a priority for anyone buying a car at that price level).
The first model is expected to take on the current range of sub-Rs two lakh cars like the Alto, Alto 800, Hyundai Eon and of course the Tata Nano while the second car will be slightly more premium and is expected to be based on the V platform that currently underpins the Micra. The company has however officially made an announcement with regard to the expansion plans.
Source: ET
