CHENNAI - Japanese auto major Nissan Motor Co Thursday said its partner Renault’s decision to suspend investments in the joint venture’s upcoming manufacturing facility near here would not affect the project’s completion.
French car maker Renault and Nissan have set up a 50:50 joint venture, Renault Nissan Automotive India, to set up a 400,000-car-per-annum plant at Oragadam, 55 km from here, at an investment of Rs.4,500 crore.
“Renault has suspended its investments in India for the time being. It will come back with its investments once the global car market improves. We haven’t given back their money invested in the project,” Colin Dodge, chief recovery officer of Nissan, told reporters here.
Without Renault’s investments, Nissan is now planning to roll out around 200,000 units, half the original target, from May 2010.
“Out of the 350 billion yen ($3.6 billion) that Nissan has decided to invest globally this year, a major share will be in India. We are hoping to achieve a market share of six percent in the country,” Dodge added.
According to him, all leading car makers including Nissan have redrawn investment plans after the recession hit the world economy.
“Last year the global car sales were 68 million units and the target for the current year is 54 million units. This has made companies to relook into their investment plans,” Dodge said.
Apart from its other models like Teana, X-Trail, 370Z, the Oragadam plant will make a new global car that would replace Nissan’s existing Micra/March model.
He added that discussions were on with commercial vehicle major Ashok Leyland to roll out light commercial vehicles (LCV) from the plant.
Both companies have signed a joint venture to make LCVs in India to be badged as Nissan and Ashok Leyland.
Asked about Nissan’s three-way partnership with Renault and Bajaj Auto to manufacture a low-cost car, Dodge said the project was “put on hold for the time being”.
Speaking about Nissan’s global plans, he said the auto major would launch eight new global models and 14 regional models.
Dodge added that the company was working on “mass market electric vehicle as the world will move towards zero emission cars. Hybrid models will be there for sometime”.
Kiminobu Tokuyama, president and chief executive of Nissan Motor India, said the company was planning to export 110,000 units from 2011 and increase that to 180,000 later.
Related News
Nissan reveals sketch of its compact carOctober 1st, 2009 CHENNAI - Japanese auto major Nissan Motors Thursday unveiled the first sketch of its global compact car to be manufactured in five countries including India. "We are serious and committed in our plans for India, and are all excited as we gear up to start production in May 2010," said Kiminobu Tokuyama, managing director and chief executive of Nissan Motor India.
A look at the top-selling vehicles through the government's Cash for Clunkers programSeptember 21st, 2009 Top-selling vehicles through Cash for ClunkersThe government posted new data late Friday on the government's Cash for Clunkers rebate program. Here's a look at the top-selling new vehicles through the program when multiple engine options, flexible-fuel vehicles and hybrid versions are taken into account.
Nissan NA plans to export engines from US to Japan for first time to install in Infinity SUVsSeptember 17th, 2009 Nissan NA to export engines to JapanDECHERD, Tenn. — Nissan is planning to export engines from the United States to Japan for the first time.
Nissan Motor launches luxury sedan Teana in IndiaSeptember 16th, 2009 NEW DELHI - Auto major Nissan Motor India Wednesday launched the second generation model of its luxury sedan "Teana" in two variants in Indian market. Priced at Rs.21.03 lakh for the 2.5XL variant and Rs.25.4 lakh for 2.5XV at showrooms in Delhi, Teana is powered with 2.5-litre six-cylinder VQ engine, the company said in a statement.
Daimler's Mitsubishi Fuso unit considers possible bus partnership with Nissan DieselAugust 31st, 2009 Daimler's Fuso considers Nissan bus partnershipFRANKFURT — German car, truck and bus maker Daimler AG said Monday its Mitsubishi Fuso Truck and Bus Corporation and Nissan Diesel Motor Co. Ltd. had signed a letter of intent to work more closely together and possibly establish a joint venture in the bus business.
Nissan reports 16.5 billion yen loss in fiscal first quarter, notes some recovery signsJuly 29th, 2009 Nissan reports loss for fiscal first quarterTOKYO — Nissan reported a smaller-than-expected 16.5 billion yen ($175.5 million) loss for the fiscal first quarter Wednesday and unveiled plans to build more cars in China, one of the few auto markets where sales are still growing. Nissan Motor Co., Japan's third-biggest automaker, blamed slumping sales in most markets and the strong yen for the April-June quarter loss.
Ashok Leyland first quarter net profit dips 84 percentJuly 27th, 2009 MUMBAI - The net profit of Hinduja group's flagship company and commercial vehicle manufacturer Ashok Leyland declined 84 percent to Rs.7.77 crore (Rs.77.7 million) in the first quarter this fiscal compared to Rs.50.5 crore it netted in the year-ago period. The total income decreased 48 percent to Rs.973 crore from Rs.1,895.3 crore, the company said in a regulatory statement Monday.
Nissan bets big on India for global operationsJuly 19th, 2009 CHENNAI - Japanese auto giant Nissan Motor Co is betting big on India not only for manufacturing cars for domestic and overseas markets but also for sourcing components for its global operations. Nissan will be rolling out three different variants of its hatchback and sedan models, as well as a multipurpose vehicle (MPV), from five plants across the world, one of which is coming up at Oragadam, 55 km from here.
ICI plans new paint unit in south IndiaJuly 16th, 2009 KOLKATA - Paint manufacturer ICI India plans to set up a new plant in south India, a top company official said here Thursday. "We are looking at places in south India, in Karnataka and Andhra Pradesh," ICI managing director Amit Jain told reporters on the sidelines of the company's 55th annual general meeting.
Nissan reports 23.1 percent drop in June sales in U.S.; Maxima model shows growthJuly 1st, 2009 June auto sales: Nissan North AmericaFRANKLIN, Tenn. — Nissan North America Inc.
Nissan Motor Corp. opens first plant in Russia, its biggest market in EuropeJune 2nd, 2009 Nissan opens first car plant in RussiaST. PETERSBURG, Russia — Prime Minister Vladimir Putin and Nissan Motor Corp.
Ghosn seeks extra euro1.5 billion in synergies from Renault Nissan allianceMay 29th, 2009 Renault, Nissan seek euro1.5 billion in new synergiesPARIS — The head of the alliance between Renault SA and Nissan Motor Co. said Friday he wants to squeeze out an extra euro1.5 billion ($2.08 billion) in cost savings this year to get the French and Japanese automakers through the economic crisis.
Ashok Leyland to use Nissan-Renault's Chennai facilityMay 15th, 2009 CHENNAI - Ashok Leyland Nissan Vehicles, whose proposed plant here to make commercial vehicles has been delayed due to land acquisition problems, may use the car manufacturing facility of Nissan-Renault, being set up near here, to roll out trucks, a top official said. Ashok Leyland Nissan is joint venture between India's Ashok Leyland and Japan's Nissan Motor for light commercial vehicles (LCV).
India expects $40 bn foreign investment this fiscalApril 24th, 2009 NEW DELHI - Despite the global slowdown and recession in Europe and the US, India expects at least $40 billion as foreign direct investment (FDI) in the current fiscal, a senior industry ministry official said here Friday. 'The overall outlook for foreign investment is positive.
Bajaj says its low-cost car will be out in 2011March 15th, 2009 NEW DELHI - Bajaj Auto Ltd Saturday said its small car, being developed in partnership with Renault SA and Nissan Motor, will be rolled out in 2011 as per schedule. Bajaj managing director Rajiv Bajaj said: 'The project remains largely on schedule, though in the course of development some specifications have been reviewed, leading to adjustments in the overall schedule.'
It had been reported in a section of the media that the ultra low-cost (ULC) project would be delayed by more than a year as Rajiv Bajaj was not happy with the work done so far, and he demanded major modification in the design.
Loading ...