Nissan Motor India is undertaking a study to set up a new plant for manufacturing
the Datsun range of small cars in the country.
Last year, Nissan had said it intends to
bring 10 models to India by 2016, including the Datsun brand priced at below Rs 4 lakh, to increase its market share to 10 per cent.
"It is under study. Chennai of course is one of the candidates", Nissan Motor India Managing Director and CEO Takayuki Ishida said. "Currently Nissan (Motor Company) headquarters is handling it. It is not a local issue. Of course the implementation is local, but decision making is taken by headquarters."
Nissan, in
association with Renault, has established its Rs 4,500 crore facility nearby Oragadam to produce its range of cars. Nissan has 70 per cent stake in plant operations.
Asked about capacity expansion plans of the joint venture manufacturing facility, Ishida said they would consider it next financial year.
"Currently, we have two (assembly) lines with three shifts. Next year we will look for expansion", he said, adding another shift can be taken up to increase capacity.
It was reported in February that the Franco-Japanese auto alliance will invest $320 million to set up a second plant in India.
Nissan retails Evalia and 370Z besides hatchback 'Micra' and medium sedan Sunny. It plans to have 300 dealerships by 2016.
Ishida said the company has received an overwhelming response to the safety drive simulation centre with more than 3,000 people visiting the Centres at Mumbai, Delhi and Chennai.
Such a model had become very popular in China with more than 10,000 people visiting the event, he said, adding Nissan offers the same concept adopted in its cars at these centres.
On the government's Union Budget announcement to hike excise duty on sports utility vehicles (SUVs) by 3 per cent, Ishida said the increase would not have much impact on Nissan as the maximum capacity of its vehicles are less than prescribed norms of 1500 cc.
"Maybe sales of 370Z will be affected. Normally customers getting 370Z do not care about (additional) duty costs," he said.
On sales target for this financial year, Ishida said the company hopes to close with about 50,000 units as compared to 33,000 last year. "Sales were driven by Micra and Sunny".
On exports, he said Nissan plans to maintain last year's numbers of shipping of over one lakh units in 2013.
With inputs from PTI
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