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Nissan, Renault to invest $600 million to make 6 new models in India
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TOKYO (Reuters) -Nissan Motor Co and Renault SA said on Monday they would invest $600 million to make six new models in India, one of three markets in which the two automakers plan to coordinate closely in a revamped alliance announced last week.
TOKYO (Reuters) -Nissan Motor Co and Renault SA said on Monday they would invest $600 million to make six new models in India, one of three markets in which the two automakers plan to coordinate closely in a revamped alliance announced last week.
The move will help address falling market shares for the Japanese and French companies in a market with rising global importance.
“This investment is very significant not only on products but on technologies like EVs to really capture the growing Indian market, which is the third-largest market in the world, and also to use India as a base for export,” Nissan chief operating officer Ashwani Gupta told reporters.
The two companies said in a statement that each would make three new models in India, all built on joint platforms – components and engineering that can be shared between designs.
Two models would be electric vehicles (EVs), the companies’ first in India; the others would be sports utility vehicles.
All will be made at the underemployed car plant that the companies jointly own at Chennai, in southern India. They have a research and development centre there, too.
Under a new structure for their two-decade-old global alliance announced on Feb. 6, Nissan and Renault will also cooperate closely in Latin America and Europe.
The two companies together had around 3% of the Indian market in 2022. Unlike Nissan, Renault does not have a significant presence China, the United States and Japan, raising the stakes for its success in India.
Industry-wide sales in India surged 23% last year to 4.4 million vehicles, overtaking the Japanese market, according to S&P Global Mobility.
The Chennai plant can produce about 500,000 vehicles a year, but last year Renault sold only 87,000 in India and Nissan 35,000.
(Reporting by Satoshi Sugiyama; Editing by Chang-Ran Kim, Edwina Gibbs and Bradley Perrett)
An electric vehicle (EV) is a type of vehicle that is powered by electricity instead of traditional fuels like gasoline or diesel. EVs use electric motors and batteries to operate, offering a more environmentally friendly alternative.
A joint platform in automotive manufacturing refers to a shared set of components and engineering designs used by multiple vehicle models. This approach allows manufacturers to streamline production and reduce costs.
Market share is the percentage of an industry's sales that a particular company controls. It is a measure of a company's competitiveness and can indicate its strength in the market.
Sports utility vehicles (SUVs) are a category of vehicles designed for passenger transport that combine elements of road-going passenger cars with off-road vehicles. They typically feature higher ground clearance and spacious interiors.
A research and development center is a facility dedicated to the innovation and improvement of products and technologies. It focuses on developing new ideas and solutions to enhance a company's offerings.
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