On February 22, 2008, Patrick Pélata, Executive Vice President, Product, Plan and Programs for Renault, and Carlos Tavares, Executive Vice President, Corporate and Product Planning for Nissan, signed a Memorandum of Understanding (MOU) with the government of Tamil Nadu confirming the development of an integrated Greenfield automotive facility located in Oragadam, near Chennai in the state of Tamil Nadu.

In a 50:50 joint venture agreement, Renault and Nissan are committed to investing a minimum of Rs 4,500 crores (€780 million / $1140 million), for an installed capacity of 400 000 vehicles per year, within seven years after the effective date of the agreement.

The project, a 670 acre (270 ha.) state-of-the-art industrial complex, will provide vehicle production for each carmaker, plus a powertrain facility. Production is expected to start in the beginning of 2010. The partners will optimize production costs through economies of scale thanks to joint investment in plant and infrastructure, as well as purchasing synergies. The plant will produce a wide range of products for both partners, suited both for the Indian market and for export (Nissan mainly).

Today’s signature confirms the Renault-Nissan Alliance’s commitment to the Indian market. Renault has been selling the Logan sedan in India since May 2007 with local partner Mahindra & Mahindra. As of end of January, 2008, the Logan has already captured 12% market share in the C segment with more than 20,000 vehicles sold since launch, placing it third in the segment. Logan’s top customer satisfaction rating in 6 independent surveys confirms its success in India. Nissan recently concluded a Master Cooperation Agreement with Ashok Leyland and agreed to form joint venture companies for development and production of LCVs and LCV powertrains. For the Renault-Nissan Alliance, India represents a strategic market with high growth potential in numerous segments.

Patrick Pélata, Executive Vice President of Renault commented, “India, one of the fastest-growing car markets and one of the most competitive supply bases in the world, will play a key role in Renault’s growing global presence. With the Chennai plant, Renault wants to build a full line-up for India, following the current success of Logan.” Carlos Tavares, Executive Vice President of Nissan said, “India is a significant part of Nissan’s global expansion plans. We are eager to build and deliver products that meet the needs of the Indian market. At the same time, we see India as another export base that will allow Nissan to be competitive in the global supply chain network.”

Sourced From: Mutual Public Relations

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