Nissan Motors is likely to establish a new factory in India to produce an entry-level car, which it intends to introduce at the cost of Rs. Rs 2.5 lakh via a joint venture.
Kiminobu Tokuyama, MD, and CEO of Nissan India, said the company anticipated “very large” volumes of the new car which would be sold in the Maruti Alto category. Ashok Leyland, which is Nissan’s India partner for light commercial vehicles, is one of the companies the Japanese car manufacturer has approached for the JV.
But Tokuyama declined to name the other companies Nissan was in talks with and stated “details are being worked on.”
The new entry-level car, which the company will place between its ULC and the Micra, will be one more partnership for the company. Tokuyama said as the model would form the core of the Indian car market that comprises a large part of sales, targeted volumes are expected to be significant, thus needing a new production unit.
Tokuyama said, “A different manufacturing base for this is one of the alternatives,” thus signifying that the car might not be produced at its Chennai plant. He said, “As we finalise our strategy for the entry-level car, we will work out the best options.”
With car loans becoming easily available, the company can expect to make good profits.