Franco-Japanese automobile manufacturer Renault-Nissan will make an investment of around $320 million with the aim to swell a complex in the Indian market, a report said on Friday, as it looks to take advantage of demand for low priced vehicles in promising market zones.
The automobile firms will invest around ¥30 billion ($320 million) in order to set up a second facility at the location near Chennai, which will be capable of fabricating 200,000 vehicle units on an annual basis by the end of next year (2014), a report said.
The said plant already has an output capacitance of 400,000 vehicle units per year.
The novel facility will generate Nissan’s Datsun models and economy Renault brands, which are in the process, the report said.
Nissan in the year 2012 declared that it would restart its suspended Datsun brand with the aim to meet up demand for reasonable vehicles in promising market zones like India, Indonesia and Russia, with the sources reporting that two innovative cars would primarily be valued near ¥500,000.
Nissan refused to verify the said report.
As per a company spokesperson, “We have a project to fabricate inexpensive cars in our subsisting Renault-Nissan combined facility, however we cannot remark on the report more”.
The report comes several months after Nissan chief executive Carlos Ghosn stated that he would think two times before making fresh investments in the Chinese market, the globe’s largest vehicle market, after Japan-brand automobile sales plummeted owing to a territorial row between Tokyo and Beijing.
Nissan’s share value declined 1.48 per cent to ¥926 on Tokyo’s Nikkei index on Feb 22nd morning.
As per reports, the first vehicle would be rolled out by January next year and would fabricate the vehicles precise to each market and not on any international podium.
The first model is expected to take on the existing range of sub-INR 2 lakh vehicles such as the Alto, Alto 800, Hyundai Eon and certainly the Tata Nano whilst another vehicle will be more superior and is likely to be based on the V stage, which at this time strengthens the Micra.