The Indian subsidiary of the Renault-Nissan Alliance is considering developing the smallest engine in their portfolio for car models in India. This step by the global alliance is targeted at cutting costs and tapping the small car segment in India.
India is a small car market where small cars bring in volume sales for carmakers. The Renault-Nissan alliance is planning to join the likes of carmakers such as Maruti Suzuki and Hyundai who are currently leading the small car segment in India.
Since the small car segment offers lower profit margins, carmakers in India maintain production cost to the least. Renault-Nissan is planning to do the same by developing and manufacturing engines in India which will enable the joint venture to save costs on import duties and shipping. Moreover, local manufacturing will also enable the carmakers to avoid losses due to currency fluctuations.
The 0.8 liter petrol engine being developed by Renault will be introduced in India in the year 2015, stated Mr. Alain Raposo Director Alliance Powertrain Planning Office Renault-Nissan.