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Japan's second largest automobile manufacturer Nissan Motor Company on Thursday scrapped plans of setting up a car plant in India with Suzuki Motor Corporation. Instead, Nissan is negotiating with French major Renault and Mahindra & Mahindra for the plant. “Nissan is in active discussion with Renault and Mahindra & Mahindra for a new partnership and will decide on this in four months. Hence, we will not continue our discussion with Suzuki for the new project,” Nissan stated.


However, Nissan would continue to work with Suzuki for original equipment supply from India for a new small car for Europe, the company said.
In June this year, Suzuki, which has 54.2% stake in Maruti Udyog Ltd, announced it would manufacture cars for Nissan at its facility at Manesar in Haryana. The announcement was aimed at strengthening the alliance to help each other expand in markets like India and Europe. Under the agreement, Suzuki was to develop a compact car for Nissan for the local and export markets, particularly for Europe.


Commenting on Nissan's decision to dump Suzuki, a Maruti spokesperson said the company had nothing to do with the decision as the agreement was between the two Japanese auto majors. Maruti said its contract with Nissan for supplying 50,000 compact cars to the European market remained intact, and that shipments would start in 2008.


Nevertheless, Maruti's scrip took a beating on the Bombay Stock Exchange after news of the Suzuki-Nissan parting broke out, to close at Rs 911.45, down 2.75%. In contrast, M&M shares closed 6.15% up at Rs 828.



Link : http://www.financialexpress.com/fe_f...tent_id=146039

Nissan to make B-segment hatch to rival Swift

Nissan plans to make a B-segment hatchback in India that could rival the Suzuki Swift.
Nissan plans to make a B-segment hatchback in India that could rival the Suzuki Swift. Though Nissan officials are tight-lipped about their future model plans, speaking exclusively to Autocar India, Carlos Tavares executive vice president (pic), hinted that Nissan was developing a B/C-segment car for the Indian market.

Obviously I would like to avoid that question but at the same time you can guess that if we are going to enter India with a plan for local manufacturing then it won’t be for the top of the range cars. Also, we won’t make extremely price-competitive products that only the Indian manufacturers can manage; so our car is going to be somewhere in between. The kind of products that you are talking about in terms of positioning is very reasonable, so it’s not going to be a surprise for you!

When probed further if Nissan would jointly sell an Alto- sized car with Maruti in the Indian market, Tavares said: I don’t think that sort of car is going to be Nissan’s entry point. What is important is that that we are able to take the best in terms of cost-competitiveness of the local supply base. When asked if Nissan was seeking a manufacturing advantage instead of a product sharing advantage at this point in time, Tavares said: I would say that would be a reasonable way to summarise our plans.

Coming to Nissan’s India car, Tavares was quick to clarify that this upcoming model would not be specific to India. We are developing a global entry-level car. It’s not a car that is specific to one country or even one region, it’s going to be global. If you want to be cost-competitive you need global volumes to give you the economies of scale.

The styling of the car will also be crucial and this is one area where Nissan is focusing strongly. What will make the difference is how we can add value on the emotional side on top of the functional side. We know that the car has to deliver durability, fuel efficiency, while total cost of ownership has to be very low. We know all this. But the most important thing now is to give something to the customer that will delight them and I think it is very possible to deliver high emotional value through design while keeping costs very low.

Nissan is also looking at a separate operation in India, independent of Maruti and Suzuki. The company is studying the feasibility of independently manufacturing cars in India with the export market in mind. Renault will also play a key role in Nissan’s future plans in India and the alliance will be leveraged to the maximum to make products from both brands, Renault and Nissan as cost-competitive as possible.

ya ya ya...

Could take a long time coming... By the time Nissan ties up with renualt and M&M and sets up production, and rivals Swift... Swift would become outdated...

This development was always on the cards, in light of the Mahindra-Renault tie-up for Logan cars.

Nissan to team up with Mahindra-Renault
Nissan to team up with Mahindra-Renault-Automobiles-Auto-News By Industry-News-The Economic Times
TIMES NEWS NETWORK[ TUESDAY, JANUARY 23, 2007 03:17:32 AM]
MUMBAI: Nissan seems to have abandoned its plans of going solo in India, and has reinforced its decision to team up with the Mahindra-Renault combine for manufacturing activities in India.

The trio is likely to make an announcement on the location of their new plant as early as February 2007. Sources close to the development told ET that the race is on between Maharashtra and Karnataka to host the highly-lucrative 8-lakh vehicles per year manufacturing facility.

Sources in the Maharashtra government have confirmed that they have had two rounds of talks with the companies but the jury is still out on which state will bag the deal.

If Maharashtra succeeds, it will come as a major shot in the arm for the state, which has already bagged auto investments worth Rs 10,000 crore from manufacturers ranging from General Motors to Volkswagen, M&M, Tata-Fiat, DaimlerChrysler and Mico Bosch.

In November 2006, Nissan/Renault’s top boss, Carlos Ghosn, announced the likelihood of a tripartite manufacturing joint venture between M&M and his companies. Nissan was to take a decision on the same in four months. But since then the Japanese car-maker has been doing constant flip-flops. Nissan even talked about setting up its own 200,000 unit manufacturing facility in India. Even before the idea of going with M&M and Renault was broached, Nissan opted out of a joint manufacturing project with Suzuki in India.

But now the company seems to be clear on manufacturing plans in India. Nissan chief operating officer Toshiyuki Shiga told Reuters on Monday that the three-way talks are proceeding “faster than expected”, and any announcement “was likely to be made jointly by the three companies”.

On the possibility of an independent plant, Reuters quotes Shiga as saying, “An independent plant is not under consideration right now.”

Nissan currently sells only the imported X-Trail sport utility vehicle, which sold under 200 units last year, in India. India sells about one million cars per year. The company seems focused on the Indian market now and once the joint manufacturing plant is put in place it will have enough capacity to manufacture 300,000 cars a year. Nissan is also believed to be jointly developing a small car for the Indian market with its alliance partner Renault.

M&M’s president automotive sector Pawan Goenka also confirmed that talks between the three companies were proceeding well and that an announcement was likely before March 9. But Mr Goenka refused to comment on which locations were under consideration for the joint manufacturing facility. Industry sources suggest that the chips are stacked in Maharashtra’s favour considering M&M’s long history in the state. M&M currently operates out of three manufacturing locations in the western state — Kandivili, Nashik and Igatpuri.

The company recently announced plans to locate its Rs 2,500 crore joint manufacturing facility for commercial vehicles with International Trucks and Engines in the Pune region. M&M’s component arm is also investing around Rs 700 crore in the state to upgrade its existing facilities.
Note from mod: Ad link to article when posting, and use search function for existing threads

Mahindra is in all profit with these partnership. I am excited to see mahindra-renault car to hit the market.

Looks like Pune will turn out to be the Detroit of the east!!

I think it totally makes sense for all auto companies to stick together. Its easy for parts manufacturers in terms of logistics, and easy for employees to jump between employers. Does anyone see this trend....

Automobiles - Pune
Telecom equipment - Chennai
Semiconductors - Hyderabad
Software - Bangalore
Call centers - Delhi

where does mumbai stand in all this....Mumbai is supposed to be the financial capital and looks like our city is being left behind.....

nissan teaming up with mahindra renault is a great move. it allows them to have a plant without the need for setting it up from scratch.
good choice of new launches would decide its future.

Totally Offtopic:
Semiconductors: Hyderabad ?? How?? I would think number of semiconductor design companies as well as designers is still higher in Bangalore... If you include manufacturing, the picture may change but the SemIndia fab has a long way to go before something comes out of it...

Off-topic !!

True, And it is because of the disgusting attitude of the GOM (Govt. Of Maharashtra) since the last 10-15 years. Remember, Navi-Mumbai was supposed to be the city of the 21st Century.. But, apathetic attitude towards the city, combined with high taxes, skittled away the opportunity for a world class infrastructure there. Meanwhile during the same time a certain Mr. Chandra Babu Naidu and later Mr. S.M.Krishna were turning things around in their respective states..

Wait for Mukesh Ambani to turn things around for Mumbai, coz i don't expect the govt policies to be any effective at all..

I couldn't help myself from responding to this thread, since Mumbai is very close to my heart !!

Nissan teaming up with Renault and M&M is a good step. Carlos Goshn is a shrewd and a calculative man. He also has made sure that the contract with Suzuki for producing 50k cars per year for Nissan stands. Now, how does this alliance stand as of now?

M&M will be a Scorpio/Bolero maker. It will not venture into cars.
Renault will have Logan and its variants. So, the mid size is covered.
Nissan has got the best deal. Its small car will be manufactured by Suzuki for Indian and European markets. It has its presence with X-Trail and it is planning to launch Teana (rivalling Accord).

In effect, no one is competing against the other and they have presence in almost all the segments.

Hyderabad is for bulkdrugs

hmm this looks interesting carlos ghosn must be the man behind this move afterall he heads the two manufacturers

Mumbai-> BOllywoodlol:

the fact that i like about this alliance between m&m and renault is the technology that might be shared with mahindra.imagine all the technical know how being put into the scorpio:Cheering: