Nissan expects the Indian market to grow to over 2m by 2012 from 1.5m sold within the last financial year, and sees its plant there as vital for the company’s European plans.
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Nissan sold 400,000 units (24% of its total sales) in Europe last year and 530,000 units the year before.
While inspecting Nissan’s new plant in Tamil Nadu last week, executive vice president and chief recovery officer, Colin Dodge, said the company’s focus was on Russia, India, China and the Middle East, yet India was crucial for the company’s European plans.
“If it collapses, our European plans collapse at Nissan, we are targeting a market share of 5.7% in India by 2012, five years back we were nowhere in China and Russia, now we have over 5% market share. India is a similar market,” Dodge said.
Over 80% of the necessary parts would be sourced from India, at a 5% cost benefit.
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By GlobalDataThe Renault Nissan JV factory on 640 acres in Oragadam, 55km from Chennai, would have facilities to produce cars and LCVs with a capacity of 400,000 vehicles annually but is scheduled to produce 200,000 units from May 2010.
The future of Renault Nissan Automotive India seems uncertain at this point with Renault suspending its proposed investment in the joint venture.
Yet Dodge confirmed Renault’s involvement in the Chennai project. “This is Plan B and we will go back to Plan A when Renault’s cash position improves,” he said.
As Renault’s production line is on hold, Nissan is in talks with Ashok Leyland over producing LCVs at Oragadam while an MOU has been signed with the Ennore port for exporting vehicles.
“The entry level segment will account for 30% in 2010, and this is our first entry into the entry level market,” said Dodge.
Kevin Jacobs
