Renault is planning to make an investment of Rs. 10,335 crore to develop a small car in India. The new small car will be developed by the company in partnership with Nissan. The company is looking at Gujarat to setup a new factory and it has already begun the preliminary talks with the state government for acquiring the land for the same.
Vadodara is being seen by the company as the ideal location for its new setup with the view of exporting vehicles owing to its proximity to sea ports. Renault is trying to acquire around 100 acres of land for its project which according to a company official will require an investment of Rs. 2,000 crore for the first phase of the project.
With a total investment of Rs. 10,335 crore, Renault plans to setup a factory that is capable of producing 4,00,000 vehicles annually. The investment amount will also cover the development costs and vendor base setup costs. The new car can be expected to be rolled out by the year 2015. However, the plans are still in the preliminary stage and not finalized yet.