Nissan will produce micra cars in chennai

Mumbai: Nissan, Japan's third largest car maker in which Renault holds 44 per cent stake, said that it will produce the next generation Micra, a small car sold in European and Pacific countries, in Chennai, along with other notified markets.

The company is developing the A platform, a all-new small car platform, which will be used to make atleast three different models, one of them being the Micra. These small cars will roll out from the Chennai plant by 2010.

French car maker Renault, which also has a tie-up with Mahindra & Mahindra for the Logan project, has committed funds in excess of Rs 4,000 crore in a joint investment with Nissan to build a manufacturing facility in Chennai that will produce about 400,000 car annually. Mahindra & Mahindra was the third partner in the joint venture before it decided to pull-out project last year.

The A platform is a set of cars that will be sold in five countries categorised by Nissan as the leading competitive countries (LCC), including India and Thailand, a statement from the company read today.

All models will be capitalised on cost competitiveness, thanks to high levels of localisation through easy sourcing of components. The company is not present in the low-cost car category and believes that there will be a lot of room for improvement.

Nissan is expecting sales of more than 200,000 units from India by 2012. The target will be achieved through its alliance with Bajaj for a small car and a commercial vehicle joint venture with Ashok Leyland.