Petrol Stop

Nissan to make India a hub for small cars

Saturday, 15 May 2010

14 May 2010;timesofindia.indiatimes.com:NEW DELHI: India's strength in manufacturing world class compact cars and its cost-effectiveness in the production process, will help the country to be the hub of small cars for Japanese car major Nissan, feels the company's global COO Toshiyuki Shiga. Forecasting a shift in car markets from the West to BRIC countries, Shiga said that the volume growth in western and other developed markets would be slow and the incremental numbers would come from countries like India, China, Brazil and Russia. "The car market is shifting from Japan, US and Europe where growth will be difficult to come by, even though the overall market may not be down. We have to adapt to this change," Shiga told TOI in an interview. He said Nissan had already invested over Rs 2000 crore for a new car plant near Chennai and was close to launching the Micra compact, the company's first India-made car, by around July. The Micra, that would be the company's volume driver in India, would also be the car that Nissan would sell in European and other key export markets. And the company would not stop at the Micra. As it starts the production of Micra for India and overseas markets, it has also announced its intention to make an entry-level car — in the Rs 2.5 lakh price range — for which it may partner Hinduja group company Ashok Leyland. The new car, that is still a few years away, may also become part of the export kitty that the company plans from India. Just like Thailand is used as a hub for making pick-ups by companies, India offered many attractions for becoming an export hub. "There are a host of benefits that we get from India for compact cars. The investments are low here and the cost of labour and parts is cheaper than Europe. Importantly, there is a domestic market for such cars that gives us the scale to go for large numbers," he said.