Nissan to produce diesel engines in India from 2012 image

Nissan Motor Co. will start producing diesel engines in in Oragadam, Chennai – India from the first quarter of 2012.

The diesel variant of Sunny is expected to be the first to roll out of this plant. Currently, the diesel engine is imported from Europe for Nissan Micra.

“Nissan has huge growth plans for India,” said Mr Rekhi. Next year will see the launch of Sunny diesel and a couple of utility vehicles. Nissan will showcase the Sunny diesel at the upcoming auto expo in Delhi.

The Japanese automaker aims to make an investment in the diesel plant out of their overall investment of around Rs 4,500 crore without any additional funding, as the plant’s production line is flexible in order to make petrol as well as diesel engines.

The company expects to close the current financial year with sales of around 30,000 units. The engine facility can be scaled up to produce 400,000 engines depending on total production capacity in the car facility.

In addition, Nissan plans to enhance the number of its dealerships to 70 dealers by the end of this fiscal from the current number of 44 dealers.