Nissan to establish a 200,000 unit plant in India

Nissan to establish a 200,000 unit plant in India

Japanese newspaper Nikkei has claimed that Nissan is going to build a 200,000 unit-a-year car factory in India. This would require an investment of around 50 to 60 billion yen by the company.

The report added that to support this operation, about 10 parts suppliers from Japan will also start local operations. This would place the total investment in India to around 100 billion Yen.

Nissan’s plant in India is expected to be functional by 2009.

The company is most likely to start production of a new compact car with an engine displacement of around 1000cc. Nissan is expected to export most of these units to their existing markets in Europe and other nations.

Interestingly, Renault is already collaborating with Mahindra & Mahindra to build a plant to assemble 500,000 cars a year from mid-2009. They own a 44% stake in Nissan and it is not clear whether there would be any collaboration between Nissan and Renault in India.