To balance the saturation in sales in the Japanese and US markets, Nissan and Renault is banking heavily on the BRIC markets and India more so. And for a substantial bite of the Indian market pie, it is important for every car maker to have a compact car. That is what Renault-Nissan plans to do along with Bajaj.
This kind of dependence also gains weight in the face of Renault-Nissan’s other partner Mahindra & Mahindra backing out of their alliance to produce cars. Renault-Nissan and M&M were supposed to set up a plant in Oragadam, Tamil Nadu, for the production of cars. With M&M backing out, this Rs 4500 crores venture has alone been handled by Renault-Nissan with support from the state. An MoU has already been signed between the govt. of Tamil Nadu and the two companies and the joint venture will be handled 50:50 by the two and will be spread over 600-odd acres.