Nissan, Renault invest US$600mil to make new models in India

Nissan, Renault invest US$600mil to make new models in India

Auto giants unveil plans for six new cars, creating 2,000 jobs in Chennai.

Nissan and Renault are targeting India, which overtook Japan as the world’s third-largest auto market last year. (Reuters pic)
TOKYO:
Japanese carmaker Nissan Motor and French counterpart Renault on Monday unveiled plans to invest US$600 million to develop new models in India, as they push to accelerate their business in one of the world’s fastest-growing auto markets.

The companies – which last week announced a revamp of their partnership amid fierce competition in areas such as emerging markets and electric vehicles – said they would collaborate on six new cars for customers in India as well as for export.

Nissan said in a statement that two of the models would be small electric vehicles, marking the first electric offerings from the companies in the South Asian nation, which last year eclipsed Japan to become the world’s third-largest auto market. The other cars will be medium-size SUVs.

The move is expected to create around 2,000 jobs and will ramp up research and development at the two companies’ Indian base in the eastern city of Chennai.

The announcement comes a week after the two sides revealed details of their renewed alliance, which also included ambitions for new projects in Latin America and Europe. “This Indian project together with Nissan is the first concrete output of the new alliance ambition released on Feb 6,” senior Renault executive Francois Provost was quoted as saying in Nissan’s statement.

Local and foreign companies have been fighting for a slice of India’s car market, with a wave of new vehicles slated to hit the roads in the nation of 1.4 billion people over the coming years.

India’s Tata Motors unveiled two electric SUVs along with another EV concept at the country’s largest automobile show earlier this year. Chinese electric vehicle maker BYD is also targeting the country.

Indian authorities want EVs to make up 70% of sales of commercial cars and trucks, 30% of private cars, 40% of buses and 80% of two- and three-wheelers by 2030. That would mean 102 million EVs plying the country’s roads, a dramatic increase from around 1 million in the 2022 fiscal year, according to estimates from researchers at the CEEW-Centre for Energy Finance.

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