Renault-Nissan will invest $2.5 billion in India in the following five years, according to CEO Carlos Ghosn.
Renault and Nissan plan to increase their market share in India by introducing new models. Despite slowing auto sales in the market, automakers are making heavy investments here, as auto sales are expected to rebound. Until now the Renault-Nissan alliance has made investments of $2.5 billion in the country, building a technology center and developing a cheap vehicle platform.
Ghosn said. “I think you can count that the 2.5 will double in the next five years.”
The alliance plans to reach a combined market share of 5% in India by the end of 2013 and increase to 15% in the following few years, from 3% during the fiscal year ended March 2013. Over the past year vehicle sales in India have continuously decreased, affected by sluggish economic growth and rising ownership.
Analysts predict that India will become the third largest auto market in the world by 2020. Renault-Nissan also plans to introduce low-cost vehicles in 2015, aimed at India and other emerging markets. Christian Mardrus, alliance managing director for logistics, said that he sees Renault-Nissan reaching joint savings of up to 3.5 billion euro in 2015.
“We have more and more convergence in our products. In 2015 when we launch the first low-cost car, we will definitely do more than 3 billion euros in cost savings,” Mardrus said.