Renault-Nissan India, the Indian arm of the alliance between the French carmaker Renault and the Japanese automaker Nissan is planning to manufacture new engines for the upcoming range of new cars to be launched in the year 2014.
This will be for the first time that the alliance will be manufacturing engines in India instead of importing components. The Datsun brand of small cars by Nissan in addition to a new small car by Renault will be powered by the new engines.
While the engines are currently being developed in Japan and France, almost all the components of the new cars will be sourced from Indian companies increasing localization to about 100 percent from the current 85-88 percent. The production localization will further enable the carmakers to price the new launches competitively and will also help bring down production costs.