Nissan and Renault have a joint venture in India with Bajaj Auto. They have plans to produce an ultra-cheap car in India that will compete against Tata Nano. According to Nissan and Renault, both the companies intend to invest nearly USD 1 billion in its Chennai plant which is expected to be operational by first quarter of 2010.
Renault-Nissan’s Chief Carlos Ghosn stated that all three partners were working on its low cost car production and expect to roll out the model by 2011. "The entry price point, which will be $2,500 is still very important for the market, not only for India, but also for lot of emerging markets. We have to bring in the car with basic feature, basic functionality at a very affordable price," he said. He also clarified that there is no set price for the car and did not confirm if the company will stick to the original price of $2500. "..(whether) it is going to be $2,500 or $2,800 or $3,000 (not sure)... (but) I am stuck into making customers happy and satisfied. But it is not going to be very far of!" Ghosn said.
Renault also stated that it is planning to bring its full range of products to India and building the right product line up for customers in India. It has been facing hiccups in its partnerships in the country ever since it made its foray in the Indian market. It is expected to start producing its models at its Chennai plant from next year.
