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Home arrow News arrow New Project news arrow Renault and Nissan sign MOU with Tamil Nadu for automotive facility in Chennai
Renault and Nissan sign MOU with Tamil Nadu for automotive facility in Chennai Print E-mail
Written by Anand   
Monday, 03 March 2008
Chennai: Patrick Pélata, Executive Vice President, Product, Plan and Programs for Renault, and Carlos Tavares, Executive Vice President, Corporate and Product Planning for Nissan, on February 22, 2008, 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."

The Renault-Nissan Alliance

The Renault-Nissan Alliance, created in 1999, has sold 6,160,046 vehicles in 2007. The Alliance aims to be ranked in the top three in terms of quality, technology and profitability amongst the major global automakers.

Renault Corporate

The Renault Group generated global revenues of €40,682 million in 2007. It designs, engineers, manufactures and sells passenger and light commercial vehicles throughout the world. The Renault Group is present in 118 countries and sells vehicles under its three brands - Renault, Dacia and Samsung. The Renault Group employs 129,000 people worldwide.

Nissan Corporate

The Nissan Motor Company generated global net revenues of 10.468 trillion yen in 2006. Nissan is present in all major global auto markets selling a comprehensive range of cars, pickup trucks, SUVs and light commercial vehicles under the Nissan and Infiniti brands. Nissan employs over 180,000 people worldwide.

 
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