Nissan set to drive into Indian market

Nissan Motor Co, Renault SA, and Mahindra & Mahindra Ltd are close to announcing a joint project that would pave the way for Japan's Nissan to enter the booming Indian market in earnest.

Nissan had said in November it would decide within four months whether to join a partnership between Mahindra and France's Renault there after a planned manufacturing project with Japan's Suzuki Motor Corp fell through.

Nissan Chief Operating Officer Toshiyuki Shiga said the talks were proceeding "faster than expected", and indicated that a plan was being drawn up since any announcement "would likely be made jointly by the three companies."

Nissan currently sells only the imported X-Trail sport utility vehicle in Asia's fourth-biggest economy, with sales there totalling 190 units last year.

With India's total passenger car sales forecast to double to 2 million units by 2010, global auto makers are all scrambling to increase their slice of the market.

Shiga also said Nissan had no immediate plans to set up its own car factory in India.

The Nikkei business daily reported earlier this month that in addition to the possible project with Renault and Mahindra, Nissan would build its own 200,000 unit-a-year car plant with an initial investment of 50 to 60 billion yen ($420-500 million).

"(An independent plant) is not under consideration right now," Shiga told reporters on the sidelines of an event to launch the new Pino minicar in Japan.

Agencies

(China Daily 01/23/2007 page16)