Renault-Nissan is looking at the burgeoning Indian automobile market with much focus and intends to become a significant part in the market over the next ten years. The inauguration of the Renault Nissan Alliance plant, the first green field project in India is a clear strategy for the company in India and a big part of this strategy is the Big Industrial complex starting production this year. The plant, which will have an initial capacity of 200,000 cars by the 2012, will be scaled up to 400,000 cars by the year 2015. The plant will be a major driver for Renault-Nissan’s objective in India.
The company doesn’t want to be a niche player in the Indian market, by selling imported cars, but develop into a full fledged player through local manufacturing with locally sourced parts produced to be marketed to the local market here in India. Their partnership philosophy in India has been sharing of technology and experience with their partner who in turn introduces them to frugal engineering and frugal product planning, thus, improving potential to produce vehicles for the developing markets.
Mr. Carlos Ghosn, CEO, Renault- Nissan said the following on Joint Ventures and Projects : -
The ULCC (Ultra Low Cost Car) project with Bajaj is currently underway. There are no plans to produce the ULCC at the Chennai facility. More details regarding the project will be announced after a formal contract is agreed upon with Bajaj.
The joint venture with Ashok Leyland for the LCV market is reaching fruition. The first product from this Joint Venture will be produced by mid 2011 and will be produced at the existing locations of the partners. The Greenfield project between the partners for the new product had been frozen due to the global economic crisis of last year. This project would be restarted as soon as the market conditions are favorable.
Renault Joint Venture with Mahindra and Mahindra – It is mutually agreed by both the partners that the market response to the Logan has been below expectations. There are discussions at this point for the repositioning and further simplification of the car. As soon as these discussions reach a conclusion they will be announced. Until then the Logan will stay on the roads and will continue its regular life cycle in the country.