September 07, 2008

Renault signs 50:50 JV with Nissan for TN unit

BS reported that Renault and Nissan Motor have signed a MoU with the Tamil Nadu government for a Greenfield facility near Chennai.

Renault and Nissan will invest INR 4,500 crore for the 50:50 JV, which is planned on 670 acres at Oragadam near Chennai. The first car is expected to roll out from here in 2010. The unit will have a capacity of 400,000 vehicles per annum. Most of this will be for the domestic market. Exports will commence four months after production starts.

Mr Tavares executive VP of Renault said that “Nissan is proud to bring its skills and passion to India and we will look for suppliers who share that passion.”

Both companies refrained from giving any details about the vehicles they will make at the facility, but it is widely believed that Renault plans to roll out its small car together with Bajaj from here.

The plant will employ between 3,000 and 4,000 people initially. Both companies will have separate assembly lines and power train assemblies. The alliance will also open the Renault Nissan Technical and Business Centre India in Chennai by March 2008.