Nissan-Renault and Daimler JV to launch a new small car in India

The newly established alliance between Nissan-Renault and Daimler AG announced today that  they are looking to add one more car in the long exhausting list of small cars jostling to grab a significant market share.

As per the agreement, Renault-Nissan and Daimler will jointly develop the next generation Renault Twingo, which is basically four-seater under Daimler's Smart brand and also a successor to the existing two-seater of the same car. It is expected that these models will be launched by year 2013.

According to a senior official of Renault India, It is likely that some years down the line, the newly established JV would manufacture the high-end small cars, like the Twingo, from company's Chennai Plant, along with developing India as its manufacturing hub for small cars.

The Twingo is basically a hatchback, powered with a 1.2-litre engine which is currently available in Europe. If the new alliances takes off the Twingo could be the fourth small car model from the Renault-Nissan JV in India.

As per this global agreement, the Nissan-Renault JV will hold 3.1 per cent stake in Daimler, while at the same time, Daimler will put-up 3.1 per cent each in Renault and Nissan.

Nissan-Renault JV is also in the process of launching an ultra low cost car in India in partnership with Bajaj Auto. Both of the company's has started the process of producing a this ultra low cost car in India, which is expected to be launched by year 2011.