Renault-Nissan's Chennai plant to be ready by Q1 next year

The Renault- Nissan chief, Carlos Ghosn, said on Sunday that the company's new Chennai factory should be open by the first quarter of next year. The company also plans to use the facility as a global manufacturing base.

He was speaking at the World Economic Forum's India Economic Summit. Ghosn is the Chairman and CEO, Renault France and President & CEO, Nissan Japan.

"The Chennai plant will go on time. However, we have currently suspended the second phase - not because we do not believe in the potential of India's market or the capacity of exports from India, but until we see where this decline in the global automotive market is ending," said Mr Ghosn.

Nissan-Renault's new factory at Chennai is expected to have an annual capacity of 400,000 cars. While Renault has put its plan on hold, Nissan is set to produce the small car Micra from the Chennai plant by May, 2010.

Ghosn further added the company is in discussion with Mahindra & Mahindra for bringing in new products and re-designing the Logan for the Indian market.

Logan sales have declined 69% during the April-September period to 2,901 vehicles.

Bullish about the growth of the Indian auto industry, Ghosn further said that sales should triple from two million to six million units in the next 10 years. "The whole auto industry is down globally, but India's exports have been increasing, which is a good sign," he said.

On the low-cost car the company is jointly developing with Bajaj Auto , he said that the company is not stuck to the USD 2,500 price tag. "The USD 2,500-car is very important for the Indian market. The price may end up being USD 2,500 or USD 2,800 or USD 3,000. We are not stuck up with that," said Ghosn.

Nissan-Renualt currently has several joint ventures in the country - three with Ashok Leyland to design and make commercial vehicles and engines, besides alliances with Mahindra & Mahindra and Bajaj Auto for manufacturing cars.
Taken from Business Line