Renault-Nissan Plans Small Car For Indian Market

A joint venture of Japanese automaker Nissan and French auto giant Renault is planning to enter in to the small car market in India. The segment which is long dominated by #-Link-Snipped-# and now #-Link-Snipped-# is an attractive area to trade the vehicles into. Both the automobile companies are busy studying the possibility of such a car which can suit Indian conditions.

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Image Credit: Cardekho

As per a rough estimate, India hosts around 40-50% of the world small car market and in the coming years or so, the car market will be one-third of the current automobile scenario of the country. It is hence necessary to expand the car portfolio and enter each and every automobile segment for the companies. Renault-Nissan shares the same intentions and will be developing the car on the same platform. For Hyundai: Renault, Nissan plan new small car for Indian market; to take on Maruti Suzuki's Alto and Hyundai's Eon - The Economic Times, the auto partnership has appointed Mr. Gerard Detourbet, Renault's Entry level head. The vehicle is expected to be ready in 2012 and will enter market to compete with other brands.

In the entry level, the partnership already has five cars in picture. They are Koleos, Fluence, Pulse, Duster and an entry level Sedan. The new car will be the sixth in this car fleet.#-Link-Snipped-# to bring in a diesel version of the automobiles. The Chennai plant has already achieved a production target of 100,000 units and now the company plans to start small car production too. The plant has a production capacity of 400,000 units per year.

The constant increasing in production and even achieving the set targets shows the confidence that both automakers have in the Indian market. However the cost of the cars seems to have caught inflation with the devaluation of Indian Rupee. It would hence be a tough competition of all the car makers to attract Indian customers.