The Renault-Nissan alliance is marching ahead with expansion plans for its entry level cars, Datsun (Codename: K2 and i2) and Renault (A Entry). With an initial plan of utilising a capacity of 4 lakh vehicles by 2015, Renault-Nissan is already ahead of its target and is looking at the addition of another 3 lakh vehicles. This is in anticipation of the expected heavy demand for the new entry level vehicles.
Buoyant optimism has been seen due to the alliance, which has experienced major success with the Renault Duster, despite an overall market slowdown. Reportedly, Nissan exports have already surpassed 1 lakh units in a year. Decision on the new plant is expected to be finalised by the second half of 2013 and it is believed to demand an investment of Rs. 1500-2000 crore.
Toshihiko Sano, Managing Director for Renault Nissan Automotive India refused to provide specific information with respect to timelines. Rather, he said, “We have already set up two manufacturing lines for our existing products. We will have to set up new line for entry-level cars. The decision on the additional line will be taken later this year.” Reportedly, the company is already negotiating with various state governments, which include Gujarat and Tamil Nadu. Likelihood of expansion in Oragadam, near Chennai is higher, since it has good facilities for exporting.
A casting and machining shop is already being built for vehicles of Renault and Nissan, which is expected to increase the localised content by up to 75 per cent. With this, the company will be able to move towards engine manufacturing from engine assembly. A bigger aim is to achieve 90 per cent localisation. Reportedly, vendors have been invited in Chennai to reduce the logistical costs.
The effect of the Duster seems to have rubbed off on other models from Nissan and Renault as well. Special editions of Nissan Sunny have been launched in February 2013, with a 2-Din touch screen multimedia audio system and premium leather upholstery. Special body moulding and chrome detailing on the boot has been given to this vehicle, which is launched in both petrol and diesel versions.
It has also been known that Nissan may upgrade the Evalia for launch in India during 2013. Storage spaces are to be covered and additional blowers could be given for the second and third row of seats. Arm rests may also be given for passengers in the second row. With all these aggressive plans and new upgrades, both the auto makers seem to have decided to take the Indian auto market by storm.
