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Nissan stepping up component sourcing from India Print E-mail
Written by James   
Tuesday, 07 December 2010
Bangalore: Nissan Motor Ltd plans to source components worth US$ 40 million (INR 1.79 billion) from Indian vendors by the end of 2012. The company is actively scouting for more vendors. In 2010 the company would source components worth US$ 10 million (INR 448.49 million) from Indian vendors.

"We are presently exporting components from India for Nissan's global manufacturing facilities in Thailand, China and Japan," said Kiminobu Tokuyama, managing director & CEO, Nissan Motor India Pvt Ltd.

In July this year, Nissan launched the petrol variant of its first made in India global compact car –Nissan Micra (Global compact hatchback), based on the Versatile ‘V’ platform at its factory in Oragadam, Chennai. The diesel variant of Micra will hit Indian roads in December. Currently around 85 percent of the car is localised, of which nearly 50 percent is sourced from vendors in and around Chennai.

Some of the components of the Micra are exported from India.

The Micra Diesel is powered with a 1.5 litre Common Rail Direct Injection K9K Diesel Engine, which is mounted for the very first time in India on Nissan’s versatile ‘V’ platform.

"We plan to localise the transmission in the future. We are actively looking for new suppliers in India and we have a comprehensive plan over the next 3 to 5 years," said Gary Kirby, assistant chief vehicle engineer of small cars at the Nissan R&D Centre in India. The company is also talking to Indian vendors to source components like cylinder heads and blocks. Currently the transmission is imported from Spain.

According to an MoU signed with the Tamil Nadu Government in February 2008, Nissan and its global alliance partner, Renault will build capacity to produce a total of 4 lakh cars in seven years with an investment of Rs 4,500 crore. The plant, which was inaugurated this March, currently has a capacity to produce 200,000 units per year.

The total investment in the plant so far is Rs 2,300 crore. The remaining Rs 2,200 crore would be invested in the next two to three years.

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