March 1, 2007
Nissan, Renault and Mahindra to build assembly location in India
Chennai, India – Renault and Indian automaker Mahindra have announced that Nissan will join them in a project to build one of the largest automotive production sites in India, with an eventual capacity of 400,000 units per year. The facility will be built in Chennai, in the state of Tamil Nadu.
The three companies are committed to an investment equivalent of US$902 million during the next seven years, with an equity holding of 50 per cent by Mahindra, and 50 per cent shared by Renault and Nissan. The industrial complex will provide vehicle production for each carmaker, plus a powertrain facility for Renault and Nissan.
Production is expected to begin in the second half of 2009; the facility will produce a range of products suited to the requirements of Indian customers. Chennai was chosen for several reasons, including its well-developed automotive and components industry, high education levels in its workforce, and its infrastructure, including its port facilities.
Currently Nissan has manufacturing sites in Japan, the U.S., the U.K., Spain, Mexico and China, and last year announced its intention to build a new plant in St. Petersburg, Russia.