This pact was entered into by both manufacturers, so as to generate volumes while keeping economies at the minimum in India, where the two auto majors have common manufacturing facilities based in Chennai, South India. This calling of quits was reported by Business Standard.
They say it is due to the fact that both companies have experienced demand saturation which has caused cannibalization of products. Their dealers also offering heavy discounts. This sharing is mainly seen in Nissan Micra and Renault Pulse, Nissan Sunny and Renault Scala where even interiors are shared by the two companies.
The recent past has seen a steady decline in demand both for the Nissan Micra and Renault Pulse. Micra demand declined 39% in the FY 2012-13, wherein only 11,449 units were sold as compared to 18,633 units in the same period in the previous year. Pulse sales dipped to below 5,600 units in the same 2012-13 period. To save from this, Renault Nissan might end this sharing after the launch of Nissan’s SUV later this year which is based on Duster.