The joint venture between the French automaker Renault and Japanese car manufacturer Nissan, Renault Nissan Automotive India Private Limited is planning to expand its operations in India and double its output to 8,00,000 cars at its Chennai production facility by 2015-16. According to Mr. Takayuki Ishida Managing Director Nissan India, the production at the Chennai manufacturing plant has already been doubled to 4,00,000 units from 2,00,000 since April 2012.
The alliance plans to expand its portfolio to 20-22 cars across various segments and categories from both manufacturers by 2015-16 and expects to compete with market leaders Maruti Suzuki and Hyundai India.
The new strategy to be used by the joint venture will be to have a diversified portfolio with products in all categories of car models in India including entry level cars and premium SUVs and sedans. Moreover, the car models with the Renault badge will be priced steeper than that of Nissan.
The partnership is planning localization of products to the extent of 90-95 percent by the year 2013 with the help of its R&D centers in Chennai. More than 100 vendors have been invited to set up camp in Chennai for the local sourcing of auto components.