Renault and Nissan plan to invest $320 million in India to build a new plant, as demand for low-cost vehicles continues to increase in this market.
The two automakers will spend the $320 million to build a new plant in the complex located near Chennai city, which will reach an annual production of 20,000 vehicles by the end of 2014, increasing the JV’s manufacturing base capacity to 60,000 units, according to Japan’s Nikkei business daily.
The plant will manufacture Renault’s new low-priced models and Datsun vehicles beginning with the second half of 2014. Nissan plans to increase its market share in India from the current 1%, a market dominated by Tata Motors, Maruti Suzuki and Hyundai.
A company spokesman said that “we have a project to produce low-priced vehicles in our existing Renault-Nissan joint plant, but we cannot comment on the report further”.
Last year Nissan said it will revive the Datsun brand only to bring it to India and other emerging markets. The company brings Datsun back to life after 30 years, and will offer two new low-cost cars in India next year. Nissan also revealed the new-logo for the Datsun brand with a blue oval, a blue band and a metallic border – similar to the Nissan emblem.