Nissan, M&M, Renault plan Rs 8000 cr Chennai unit

Chennai is where the Nissan, M&M and Renault joint-venure will set up shop. The three automakers will pump in about Rs 8000 crore to set up a car manufacturing facility, reports CNBC-TV18.

Nissan, together with M&M and Renault will jointly set up a car manufacturing facility in Chennai. The plant will have an annual capacity of four lakh units by 2009.

The three automakers will drive in investments to the tune of Rs 8000 crore for this venture. M&M, which will hold 50% in the venture, will put in Rs 4000 crore, while Nissan and Renault will invest Rs 2000 crore each and individually hold 25%.

Sources say that the Chennai plant will be used to build derivatives of Renault's Logan. A decision on other models from Nissan's stable will be made later. An announcement by the three companies and the Tamil Nadu government will be made as early as next week.

CNBC-TV18 was the first to break the story of Nissan's India plans on January 8. The going may not be easy for Nissan. It is a latecomer and sells only the imported SUV X-Trail, which has saw a total sales of 190 units last year. Globally, Renault owns 44% of Nissan, which in turn has a 15% stake in the French carmaker.  

Nissan also has an agreement with Maruti to manufacture 50,000 small cars under Nissan's badge, mostly for export to Europe from 2008. Renault and Mahindra also have another joint venture that is scheduled to build the Logan at a factory in Nashik starting this year.