Mahindra & Mahindra has announced plans to set up a massive new car plant near Chennai with Renault and Nissan, with the three companies recently signing a Memorandum of Understanding to this effect. The new 400,000 units- per-annum facility would be set up at a total cost of about Rs 4000 crore, with Mahindra being a 50 percent partner and Renault-Nissan jointly holding the balance. Production at the new plant is expected to commence from the second half of 2009 with all three companies producing their models from same plant, the first time this will happen in India. As to which models will roll off the lines at this new plant, each partner has very distinct plans and strategies. Renault plans to expand on its Logan platform (code L-90) by manufacturing variants like the Logan Steppe (code R90), as well as a premium hatchback for the B-segment (code B90). Other spin-offs include an SUV, crossover (code H79) and possibly a coupe as well. However, Renault does not plan to make the sedan version of the Logan at the Chennai plant, since this model is already in production at Nashik currently, as part of its earlier joint venture with Mahindra. Significantly, Renault is also planning to make the latest version of its Megane sedan model (which is due in Europe by end- 2008) at the Chennai plant for the Indian market. Renault expects to make around 80,000 units by 2009, with volumes increasing over time.
Nissan on the other hand would be starting off with its small hatchback model (X02A) and then the large hatch (X02B), with volumes expected to touch 1.95 lakh and 1.3 lakh respectively by 2012. These models will come with a range of engines including 1.2 and 1.5-litre petrols (XH5) as well as a 1.5-litre diesel (XH2).
