Renault Nissan partnership has long term plans for the Indian car market. Last week it stated construction of its $1.1 billion plant in Chennai that would manufacture its mid and high end segment cars. It shall manufacture Nissan's Micra model and Renault's Logan in its initial phase. It shall be producing nearly 400,000 cars by the year 2010.
"The new project is a clear indicator of Renault Nissan's long-term strategy for this important market", says Shohei Kimura, vice-president of the India project.
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The French car maker Renault has a 50-50 joint venture with Japanese car maker Nissan in India. Renault Nissan Automotive India is not only targeting the ultra-cheap car segment but also plans to add more products to its portfolio by catering to the mid and high end segment.
The mid-size car segment is dominated by Maruti Suzuki in India. India's average GDP per person is $3600 against China's $8000, thus the car market in China is leapfrogging to new heights. However, car still remains out of reach for a vast population in India. For this reason, Renault-Nissan has tied up with Bajaj to produce ultra-cheap car to compete with Tata Nano and also lure the motorcycle users in the country.
