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The move underscores the global carmaker's goal of becoming not just a niche player but a full-fledged player in the Indian market over the long term.
Nissan too plans to come out with more low-priced small cars for the Indian market. “We believe that below Micra segment there is space for many products not only for India but also for new emerging markets,“ said Ghosn.
“Our new global compact car Micra will come in the B segment. We are also working with Bajaj for ULC project, which was identified as one of the areas below the Micra segment.
But there is a place for another product between Micra and ULC and that segment could fall in high volume category of Indian car market ,“ he said. He also confirmed that Nissan was in talks with Ashok Leyland for the proposed new car about the perspectives and segment but is yet to finalise anything. “Ashok Leyland is active partner in our alliance,“ he added.
“We are here not just to market our product or for offshore operations, but to learn frugal engineering, frugal product planning etc.
We want to produce larger volumes with less investment. We are global carmakers and we don't need technology partners.
With their successes in two wheelers and commercial vehicle segments, Bajaj and Ashok Leyland respectively could bring in their frugal product planning, knowledge, and passion, among others to assemble the cars frugally, he added.
“We will have multiple partnerships, but for different reasons and different product segments. Because the Indian market is all about pricing and without competitive price we can't grow here. India in our opinion is the next potential market with volumes slated to cross five million and even six million in the future and both Nissan and Renault aim to bring huge volumes to become a fullfledged player over the long term, he said.
Ghosn said the proposed ULC project with Bajaj Auto is moving along and the company was negotiating the contract and other details. “We have agreed to the development of such a car. But that will not be assembled in Oragadam plant, which will be inaugurated on Wednesday, of Nissan-Renault combine.
Ghosn also said he was not very satisfied with growth level of Logan, produced by Mahindra Renault, a joint venture between M&M and Renault. “We shared it with our partner and we are discussing with them to reposition the product. But we have not yet concluded anything,“ he added.
However, he confirmed that Logan would continue to be produced for the Indian market. “Logan will stay in India and the Indian customers can continue to enjoy its service without any doubt,“ he added.
The partners are engaged in discussion to make the product much more competitive in the Indian market. The Orgadam car plant, Chennai that will produce Nissan's new compact car Micra, which will hit the Indian market in July, is expected to produce about 80,000 units in the first full year while it hopes to reach the capacity of 200,000 units by 2012.
Over 50 per cent of production will be earmarked for export markets.
The plant will assemble Nissan's three CKD products, besides the Micra and two CKD products of Renault. Micra is expected to come with substantial localisation.
“However, mass production of Micra will commence in May at Oragadam and three months later we will start exporting the cars.
We want to move to twoshift operations and complete the line by the end of 2010,“ Akira Sakurai, MD, Renault Nissan said.
Nissan plans to unveil nine new products, including five locally made models, in India by 2012. It seeks to offer products ranging from entry-level cars, sedans, and hatchbacks, SUVs and to light commercial vehicles. The Oragadam plant hopes to reach 400,000 units a year capacity mark by 2015.
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