After Mexico and Thailand, Nissan sees India as an export hub

Saturday 17 December 2011, 10:59 AM by

The Japanese automaker, Nissan Motors, is all set to turn India into an export hub by expanding production capacities of its assembly lines. The strategic business decision came as result of continuous appreciation of Japanese Yen, which was all-time high against US dollar over the past few weeks. In order to make the most of prevalent volatility in foreign currency markets, exporting from Japan becomes untenable and non-competitive in terms of prices.

The expanded production capacities in India will cater to the worldwide demand. Kiminobu Tokuyama, managing director and chief executive officer, Nissan India, said, “India will be more important as an export hub for Nissan’s global operations in future. Due to Yen appreciation, it doesn’t make business sense to export more out of Japan. Hence, we plan to expand capacity in both India and Thailand for global operations.”

The third biggest car exporter from India, Nissan has exported 1.25 lakh units of Micra in past 15 months to around 100 countries. Mr. Tokuyama, managing director and chief executive officer, Nissan India added, “We will start exports of recently launched Sunny sedan in 2012.” Currently, the automaker is utilizing less than 50 per cent of its production capacity of 200,000 units at Chennai. Beginning of operations from the second assembly line will raise plant’s annual output to 400,000 cars.

Not confined to Nissan Motor alone, other Japanese car makers such as Honda and Toyota are expected to join the league, as they have already hinted at reducing exports out of Japan. Honda and Toyota are yet to kick-off car exports from India.

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