Nissan Motor Company has announced its plan to start the production of diesel engines in India in 2012 with the aim to expand the localization level of its cars in India. The plan is a part of the company’s investment of Rs. 4,500 crore and will increase the level of localization of its vehicles to 80 percent, says Mr. Sunil Rekhi, Chief Finance Officer at Nissan Motor India Pvt. Ltd.
Currently, Nissan Motors in partnership with the French carmaker Renault manufactures 2,00,000 vehicles per annum at its Oragadam facility and produces 1.2 liter and 1.5 liter petrol engines for the Micra and the Sunny respectively.
According to Mr. Rekhi, the investment will not be a major one as the plant is flexible to manufacture both petrol and diesel engines. Once the production of diesel engines commences, the company may consider exports in the future. He added that in early 2012, the company is planning to launch the diesel variant of the Sunny sedan and expand its dealership network from 44 to 70 by the end of the fiscal year 2011-2012.