Nissan Motor Company, which had earlier announced its plans to shift production of its Micra cars for the European market from the U.K. to Chennai plans production of its first made-in-India compact car by May.
According to PTI, the Japanese auto giant, which also aims to use India as an export hub for Africa and the Middle East, has recently indicated that its Chennai plant would become operational by May 2010 and it will be the sourcing hub for the global compact car for Europe. In India, Nissan plans to add 55 dealerships, some of which would be owners of multiple outlets by 2012.
"The result of the first production trial is good. We will start rolling out the cars in May," said chief executive and managing director Akira Sakurai at the launch of a Nissan Motor dealership in Chennai. In the first trial, more than 30 units were produced and the trial production of power train is on. Sakurai said the company has 97 vendors and the local content of the first model that will be rolled out will be 85 percent. The staff strength at the plant will be increased to around 1,500 people by May from 1,000 currently, as told by him.
Furthermore, Nissan is also exploring the feasibility of reconsidering its import strategy for bringing down the costs of its luxury cars - Teana and X-trail. The official spokesperson of the company has indicated that it is weighing options of switching from its current model of importing completely built units or CBUs. Instead, it could be considering importing completely knocked down kits (CKDs). The move, if implemented, could yield significant cost reduction on its luxury cars, said Nissan India's spokesperson. "We have not decided yet but are studying alternatives," he said, adding, "The price point of Teana and X-trail is high because of its positioning in the premium segment and the high import tax."
Following its cues from domestic automakers a number of international and domestic auto companies, Nissan India is also drawing up plans to either bring its vehicle-financing arms or enhance its presence, in a bid to accelerate the sales of its current and future vehicle sales. It is widely believed that the decision comes on account of the financial credit crunch due to tightening of lending norms by banks (especially the private ones) and other financial institutions in addition to imminent steep interest rates.
When contacted the spokesperson of the company said, "Rolling out a finance arm is just on the drawing board of the company. We are looking at wholesale and retail financing to improve sales. But we have not arrived at any decision and have to approach the RBI for a non-banking financing license."
IANS reports that the automobile engineering design and research company Renault Nissan Technology and Business Centre India Pvt Ltd (RNTBCI) will soon shift the fuel cell research team from near Chennai to IIT Madras Research Park in the city. It was reported earlier that a 50:50 joint venture between Japanese Nissan Motor Company and Renault of France, RNTBCI works in the areas of advanced research and development, advanced computer aided engineering, product development, digital vehicle development, information systems development, Indian and global parts sourcing. A sum of Rs.645 million ($13 billion) has gone into the venture.
"The new centre will have around 100 research engineers. They will study ways to improve the performance of fuel cells," Grahame Cornforth, senior vice president and director, told reporters here Monday on the sideline of a Nissan Motor dealership launch. He also stated that the company is progressing as per plans and the headcount will go up by 300 to 1,500 by March 2011. He said the company does engineering design for Nissan's global operations and not restricted to their Indian car plant. According to Cornforth the company is working on couple of upstream projects. "Nowadays building prototype vehicles are not in vogue. A vehicle is designed and engineered in a computer and finally a real car is rolled out for final testing," he said.
"The result of the first production trial is good. We will start rolling out the cars in May," said chief executive and managing director Akira Sakurai at the launch of a Nissan Motor dealership in Chennai. In the first trial, more than 30 units were produced and the trial production of power train is on. Sakurai said the company has 97 vendors and the local content of the first model that will be rolled out will be 85 percent. The staff strength at the plant will be increased to around 1,500 people by May from 1,000 currently, as told by him.
Furthermore, Nissan is also exploring the feasibility of reconsidering its import strategy for bringing down the costs of its luxury cars - Teana and X-trail. The official spokesperson of the company has indicated that it is weighing options of switching from its current model of importing completely built units or CBUs. Instead, it could be considering importing completely knocked down kits (CKDs). The move, if implemented, could yield significant cost reduction on its luxury cars, said Nissan India's spokesperson. "We have not decided yet but are studying alternatives," he said, adding, "The price point of Teana and X-trail is high because of its positioning in the premium segment and the high import tax."
Following its cues from domestic automakers a number of international and domestic auto companies, Nissan India is also drawing up plans to either bring its vehicle-financing arms or enhance its presence, in a bid to accelerate the sales of its current and future vehicle sales. It is widely believed that the decision comes on account of the financial credit crunch due to tightening of lending norms by banks (especially the private ones) and other financial institutions in addition to imminent steep interest rates.
When contacted the spokesperson of the company said, "Rolling out a finance arm is just on the drawing board of the company. We are looking at wholesale and retail financing to improve sales. But we have not arrived at any decision and have to approach the RBI for a non-banking financing license."
IANS reports that the automobile engineering design and research company Renault Nissan Technology and Business Centre India Pvt Ltd (RNTBCI) will soon shift the fuel cell research team from near Chennai to IIT Madras Research Park in the city. It was reported earlier that a 50:50 joint venture between Japanese Nissan Motor Company and Renault of France, RNTBCI works in the areas of advanced research and development, advanced computer aided engineering, product development, digital vehicle development, information systems development, Indian and global parts sourcing. A sum of Rs.645 million ($13 billion) has gone into the venture.
"The new centre will have around 100 research engineers. They will study ways to improve the performance of fuel cells," Grahame Cornforth, senior vice president and director, told reporters here Monday on the sideline of a Nissan Motor dealership launch. He also stated that the company is progressing as per plans and the headcount will go up by 300 to 1,500 by March 2011. He said the company does engineering design for Nissan's global operations and not restricted to their Indian car plant. According to Cornforth the company is working on couple of upstream projects. "Nowadays building prototype vehicles are not in vogue. A vehicle is designed and engineered in a computer and finally a real car is rolled out for final testing," he said.
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