Renault-Nissan India to invest Rs 5,000 crores at Chennai plant by 2022
Renault Nissan Automotive India Private Limited, an alliance between Renault SA of France and Nissan Motor Co., Japan have already invested $1 billion in India to set-up their existing plant in Oragadam, Chennai. It is here where the two manufacturers produce all their cars, for domestic as well as export markets.
The plant has a capacity of 400,000 vehicles per annum which is divided between Renault India and Nissan Motors India. Now, this plant is set for expansion with total investments of another INR 5,000 crores with C V Sankar, additional chief secretary (industries department), Tamil Nadu confirming a MoU with the company. Expansion work has commenced with a timeline of 7 years for completion.
Both Renault and Nissan are trying to increase their presence in India. Last year, Nissan launched brand Datsun, which too is being manufactured at the same plant. This year, Renault will unveil a new small car under Rs 4 lakhs which is based on the Renault CMF-A platform. Next year, Datsun and Nissan will use the same platform to launch new small hatchbacks and SUVs. To accommodate these new products, this new investment of Rs 5,000 crores will help Renault-Nissan to increase their production capacity.
Sankar, speaking at an investor’s road show in Mumbai earlier this week has confirmed that Tamil Nadu will be on an investment spree to further entice the auto sector. The state is targeting investments to the tune of INR 1 crore out of which INR 76,000 crores have already been earmarked with INR 23,000 crores towards the energy sector and the balance INR 53,000 crores towards non-energy sectors.
Quickly becoming a major automobile hub, Tamil Nadu has also seen investments from Mahindra and Mahindra and MRF Tyres. M&M will be investing INR 4,000 crores in the state and have acquired land of 450 acres in Cheyyar, Tiruvannamalai district. Likewise, MRF Tyres have also planned investments of INR 4,500 crores over the next seven years.
Tamil Nadu is favoured by the auto industry due to its proximity to ports and better infrastructure. The state contributes about 25 percent to the country’s automobile output.
via DNA India