India to be the next small car hub; says Nissan

Nissan, the  Japanese car maker recently quoted that the cost-effectiveness India offers and the strength of the country in making world class compact cars would soon make India the new hub of small cars. Toshiyuki Shiga, global COO, Nissan Motors added that there has been a shift in the car markets towards the BRIC countries like India, China, Brazil and Russia.

The current trends have indicated more sales from the developing markets and would continue to be so as the development and sales from the western is going to be slow. Although the overall automobile market is not down, yet the growth has been difficult from Japan, US and Europe, the major automobile markets as of now, says Shiga.

Shiga said that Nissan has invested a roping Rs 2000 crore in India, for a new plant to be established near Chennai. The company is already on with the production of Nissan Micra, a hatchback from the company that is expected to be launched in the month of July 2010. Micra is going to be the first all-India based car from Nissan Motors.

Nissan Micra would be available for sales in the Western markets but it is India that is expected to be the volume generator for the car. Apart from Micra, especially manufactured for India, the company is also planning to launch an entry level car to be priced at Rs 2.5 lakh. The car would however take a few years since it appears on the Indian roads, it would also be solely targeted on Indian markets.

India offers several advantages on the front of becoming the next small car hub. The investments are lower and the labour and parts are cheaper here. This happens to be major factor as car companies can expect to drain huge profits from the sales in the Indian markets.

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