Renault's Carlos Ghosn: Indian car mkt to multiply 3 times

Automaker Renault Nissan's CEO Carlos Ghosn inaugurated a new plant in Chennai yesterday, which ramps up the company's capacity in India quite dramatically.

Nissan is looking at manufacturing a second low cost car between Rs 2 and 4 lakh. Speaking at a conference in Chennai, Ghosn said the company wants to develop another small car in India for which it does not rule out partnering with Bajaj Auto. Ghosn clarified that Renault's major thrust will remain in the base affordable car segment.

Production of the first low-cost car Micra at the Renault-Nissan plant is likely to begin from May 2010, he said. Micra will be priced at Rs 4 lakh. Renault-Nissan alliance will start selling Micra hatchbacks from July and aims sales of 80,000 units in the financial year ending March 2011, an official said.  According to plans, Micra will be exported to Europe, Africa, Middle East from Chennai. In India, the company aims to to achieve 1 lakh units sales by 2012.

Many years ago in a poll done amongst Japanese women, Ghosn was voted as the most desirable husband in the world. Since then he has earned the moniker of 'Le cost killer'. In a freewheeling chat on CNBC-TV18, Ghosn spoke about the company's plans for India.

Here is a verbatim transcript of the interview. Also watch the accompanying video.

Q: You must be really relived. It's four-five years of an engagement with India-frequent trips, numerous press conferences, three alliances, of which one a little shaky right now and one car that didn't do as well as you expected it to-finally you have a plant to show for all the efforts that you have put into India-is that correct?

A: Yes, it is correct. India is a very sophisticated market, particularly for car manufacturers who have been exposed to many markets in the world. We recognised instantly the fact that India needs a lot of patience, lot of analysis, a lot of learning, accepting from time to time that you got to make one step back in order to make three steps forward. But now we think after these years and with the arrival this plant that we have a very strong product plan. That we have products which are going to be localised, which means very competitive and we are going to be using our network in India not only to compete on the Indian market but also to use India as an export base for Europe, for Middle East and for Africa.