Renault-Nissan has scaled back its plans for India. Its ultra-cheap car project in alliance with Indian automobile maker, Bajaj Auto, is delayed a little but will be on track at a slow pace. Renault-Nissan also plans to reduce the number of planned production lines at its upcoming manufacturing plant in Chennai.
“Renault has slowed down many projects across the world including its under-development factory in Morocco. In Chennai, the construction work continues though we have frozen our product plans for the moment. However, Nissan’s product plans out of the Chennai plant are very much on,” said Ashish Sinharoy, Renault India VP communications & corporate affairs, on the current situation.
Renault-Nissan has agreement with Bajaj Alliance to manufacture ultra-cheap car costing around $2500 where the Indian counterpart shall have 51 percent stake. Renault-Nissan will offer the necessary R&D and financial support to the project. The company has undertaken a feasibility study and if the results are favourable it will start the production by 2011.