Nissan-Renault Automotive India started construction of its Rs 4,500-crore passenger car plant in Chennai.

"This is an important day for Renault, Nissan, our local employees and the community. The new project is a tangible result of the strength and success of the Nissan-Renault alliance and is a clear indicator of the company's long-term strategy for this important market," said Shohei Kimura, managing director of Nissan-Renault.

The factory is expected to roll out cars by 2010. It will produce four lakh units annually for the domestic as well as the foreign market.

Nissan-Renault is a 50:50 joint venture between Nissan and Renault to manufacture passenger cars in India. The company has a minimum investment plan of Rs 4,500 crore.

Last month, the Nissan-Renault alliance entered into a joint venture with two-wheeler major Bajaj Auto to develop, produce and market a low-cost car priced at $2,500 by 2011.

Renault also plans to produce cars on the Logan as well as other platforms. "It is currently developing a product range to match the needs, tastes and dreams of the Indian customer," the company said.

Nissan will produce a family of models, including its compact car Micra based on its new A-platform.

While Suzuki has a 50 per cent share of the market, Renault and Nissan have lagged behind rivals in expanding their footprint in India. Renault has a 2.2 per cent share.

Other automobile manufacturers such as General Motors, Ford Motor and Volkswagen have announced a combined investment of $6 billion for India, where car sales are expected to double by 2013.


Source: telegraphindia.com