Nissan India projects to see delay in 2009

The Nissan Motors – Renault SA combie have decided to temporarily hold their auto manufacturing production projects in India. The reason, as we know, is the current sate of the economy.Nissan had initiated a collaboration with French car maker Renault to begin a car factory in India in the first half of 2010. The two car makers had hoped to make as many as 400,000 cars by year 2015. Nissan and Renault are aiming to come up in the range of leaders in automobile such as Maruti Suzuki India Ltd, Hyundai Motors and Tata Motors Ltd. Further, they have a wide range of projects from passenger cars to commercial vehicles, said industry sources.

The Japanese company has said that it, along with Indian major Bajaj Auto and French giant Renault, is going ahead with plans to launch a $2500 small car by 2011. Work on the new small car, that would compete with Tata Nano, is progressing.

Meanwhile, Nissan is also mulling over putting off plans for the production at a truck venture with Ashok Leyland by six months to mid of the year 2011. Ashok Leyland has been waiting for land to set up the project, it is believed. Nisan has said that the slowdown in sales of trucks as a reason for the delay in the project.

Nissan had, a few months ago, kick started an agreement with Ashok Leyland and had planned to start its production in April 2010. The Pillaipakkam plant in Chennai has the capacity to produce 100,000 units a year. The joint venture had targeted an 80 per cent of output at domestic sales, said sources.

The joint venture partners believe that the demand for trucks in India with the government already having put in a major effort aimed at developing the roads and spending on infrastructure. With demand for trucks expected to pick up, Nissan and Ashok Leyland feel that the truck venture would see success in the Indian market.