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June 17, 2008

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Renault, Nissan Break Ground for New Plant in India

Facility to Produce up to 400,000 Passenger Vehicles Annually

CHENNAI – Renault Nissan Automotive India Private Limited (RNAIPL) hosted the ground breaking ceremony for its new passenger vehicle plant in Chennai, India, expected to begin operations in 2010. The facility will have an annual production capacity of 400,000 and will produce vehicles for export and the local market for both Renault and Nissan.

A 50:50 joint venture between Renault and Nissan to manufacture passenger vehicles, RNAIPL represents an investment of a minimum of Rs 4,500 crore (€780 million /U.S. $1.1 billion).

“This is an important day in Chennai for Renault, Nissan, our local employees and the community,” said Shohei Kimura, managing director of RNAIPL. “The new project is a very tangible result of the strength and success of the Renault-Nissan Alliance, and is a clear indicator of RNAIPL’s long-term strategy for this important market.”

Renault plans to produce several cars on the Logan platform and on other platforms as well. Building on the success of Logan, Renault is currently developing a product range to best match Indian customers’ needs, tastes and dreams.

Nissan will produce a family of models based on its new A-platform, including the next generation of Micra. India is one of the five leading competitive countries (LCCs) to produce the new A-platform models. The development of a competitive A-platform is one of several business breakthroughs announced as part of Nissan GT 2012, the company’s new five-year business plan.

Renault business in India

Renault has a 49:51 joint venture with Mahindra & Mahindra for the production of the Mahindra-Renault Logan in Nashik and its distribution via the Mahindra network. Sales of Logan in India have totaled approximately 29,000 units since it went on sale in May 2007.

Logan has been voted number one in its segment in India for quality and attractiveness according to six different customer surveys.

Renault also has a satellite design center in Mumbai called Renault Design India, the first local design operation of a Western auto manufacturer in India.

Nissan business in India

Nissan plans to introduce nine products in India, ranging from the ULC car, a compact car and light commercial vehicle (LCV) to higher-end SUVs and sedans, including five locally built products by 2012. Three LCV companies have been created with Ashok Leyland for manufacturing, powertrain manufacturing and technology development. In further developing the automotive infrastructure for the market in India, Nissan is working with Hover Automotive India Private Ltd. as its service partner for marketing, sales, after-sales service and dealer development.

Note: Amounts in dollars are translated for the convenience of the reader at the foreign exchange rate of 100 roupies per 1.73 euros, 100 roupies per 2.44 US dollars.

(June 6, 2008)

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