Renault to expand its portfolio and use Nissan's manufacturing unit

Renault plans huge to establish itself on the Indian shores. The French auto giant plans to utilize Nissan Motors, its partner's plant to manufacture the company's new small car for the Indian auto market. It was reported by the senior official at Renault's Indian manufacturing plant

As per Mr Ashish Sinharoy, the Vice-President communications and corporate affairs in Renault India Pvt. Ltd., stated it will introduce the small car by 2012 but he also refused to give away the other specific details.

If assessing the Indian buyers mentality, here consumers look for cheaper and fuel efficient cars rather than sedans. The total sales of the company is the two third of the total car sales in the domestic auto market. India is a growing economy and the Indian auto sector accounts to be the second fastest growing auto market.

If looking the small car market leaders it is undoubtedly Maruti Suzuki India, which is swiftly followed by Hyundai Motors India. There are few other which are in the league include Ford Motors, Volkswagen, Nissan and General Motors.

Mr Sinharoy revealed that Renault wishes to introduce five new car models but right now it does not sell any car in South Asian countries. He added that Renault Fluence the saloon is expected to enter India in the mid of 2011, however the Renault Koleos, the SUV will come by October. The rest of the launches will be in 2012 which will commence with the introduction of the hatchback.

Mr Sinharoy also revealed that the hatchback production would take place in the company's South India manufacturing plant. However, Renault Fluence and Renault Koleos will be assembled as the completely knocked down units initially. Till the time the company does not have the increasing volumes, the company will produce all the five models in its Chennai manufacturing unit.

Nissan and Renault are investing 45 billion rupees ($991.1 million) to set up the Chennai unit which will have the yearly capacity of 200,000 cars. The companies are in equal partnership and have already rolled out the production in March last year. Nissan Micra is manufactured in this manufacturing unit.

Renault has called off its five year old partnership with Mahindra & Mahindra India to manufacture and sell Mahindra Logan in India. Now Mahindra will manufacture the car and sell it however Renault will still supply key components which are transmission and engine.

Mr Sinharoy also said that the company will still supply the component parts from the Indian suppliers for rolling out Mahindra Logan in European auto market. These suppliers are the same which will be also supplying for the new car models as soon as the company increase its local productivity.

Read More on : Renault Fluence