Nissan to roll out budget car by '10

Nissan, Japan's third largest car maker in which Renault holds 44 per cent stake, will churn out three models based on a single platform from its manufacturing base in Chennai by 2010.

The car will be sold in five countries categorised by the company as the leading competitive countries. The car, based on the A platform, will be produced in these countries that include India and Tailand.

All models will be capitalised on cost competitiveness, thanks to high levels of localisation through easy sourcing of components. The company is not present in the low-cost car category, and believes that there will be a lot of room for improvement.

While announcing the company's result for financial year 2007, Carlos Ghosn, chief executive officer, Nissan, said the company would also set up a technical centre in Chennai in partnership with Renault, where they are developing a 400,000-unit per year facility for passenger cars. Together, the Renault-Nissan alliance is the fifth largest automakers in the world.

Nissan is expecting sales of more than 200,000 units from India in 2012. The target will be achieved through its alliances with Bajaj, for a small car, Ashok Leyland for commercial vehicles, Renault for passenger cars and Hover for sales, marketing and dealer development support.

The company also has a contract manufacturing alliance with Maruti Suzuki for export of about 50,000 units per year of A-segment vehicles to Europe.

"In India, we have made a strategic plan to work with partners to speed up our entry into the market and to leverage local expertise and building on Nissan's proven track record of success with collaborative relationships," said Ghosn.

While speaking about the issue pertaining to emission norms, Ghosn said the company believed that the zero emissions will be achieved through clean diesels, hybrids and downsized engines.

"For an automaker, the best way to address both trends over the long term is through zero-emission vehicles, which are totally neutral to the environment. For Nissan, this is a core element of its strategy," he added.

The company is working with Bajaj Auto, India's second largest motorcycle maker, and France's largest car maker Renault to jointly produce an ultra low-cost car priced at $2,500 for India and distant overseas markets.