NISSAN and Renault will crank out independent marketing strategies in India to avoid confusion at the retail end. This means that the two companies may have separate local partners even though they will share the same greenfield plant, along with Mahindra & Mahindra, to manufacture their cars. In an exclusive chat with ET, Nissan-Renault big kahuna Carlos Ghosn said Nissan would look for its own partner, which may be Mahindra, but not automatically so. “Nissan will have a partner to market and sell its cars in India because there are a lot of advantages when you have one local partner to help you out,” he said. “It can be M&M, but not automatically so... it’s open. Renault and Nissan will have entirely separate marketing structures so that the Indian consumer does not get confused between the two brands.” There is considerable speculation, which is entirely unconfirmed, that Maruti could be Nissan’s Indian marketing and distribution partner because of the close links between Nissan and Suzuki worldwide.
Renault to factor in cost for engines in India
MARUTI is making a small car for Nissan, on a contract manufacturing basis, for the Indian and European markets. It plans to make 50,000 units per year. Sources say that at a recent supplier meet, Nissan and Renault have indicated that apart from the Logan family — including a seven-seater MCV based on the same platform — Renault may also consider Megane for the Indian market in both two- and four-wheel drive options. As for Nissan, it’s looking at a small car and a mid-sized sedan, and the options may include Micra and Teana, say industry sources. But these products will be sold through separate marketing channels. The partnership between Renault and Mahindra may in future take on the kind of product-sharing arrangement that Tata and Fiat are following outside India, said M&M vice-chairman and MD Anand Mahindra. That has been discussed, and it’s something both partners are looking at. “I would be delighted if there are products in the M&M stable that Renault and Nissan find interesting to help them carve a niche in some overseas markets,” Mr Mahindra said. “That would be a real opportunity for us and it’s on the table. In fact, Carlos (Ghosn) brought it up,” he said. Mr Ghosn also said Renault would make 2,50,000 engines in India, but is not looking at transmission systems now, though it may consider this in future. A ramp-up of both car and engine capacity is also a possibility. “We have a tendency to be cautious when we are looking at volumes, particularly when we enter a new country,” he said. “It’s not that just because we are talking about 2,50,000 engines that’s what is going to happen. But first, let’s ensure that on the basis of 2,50,000 engines we are going to be able to do something cost-competitive and efficient.” The greenfield facility near Chennai, to be shared by the three partners, will have a capacity of 4,00,000 units by 2013/14. The engine plant, with a capacity of 2,50,000, is a 100% Renault subsidiary. “As for transmission systems, it’s not a priority, but that doesn’t mean it won’t come,” he said.
THIS ONE’S FOR THE ROAD: Carlos Ghosn with Anand Mahindra
NISSAN and Renault will crank out independent marketing strategies in India to avoid confusion at the retail end. This means that the two companies may have separate local partners even though they will share the same greenfield plant, along with Mahindra & Mahindra, to manufacture their cars. In an exclusive chat with ET, Nissan-Renault big kahuna Carlos Ghosn said Nissan would look for its own partner, which may be Mahindra, but not automatically so. “Nissan will have a partner to market and sell its cars in India because there are a lot of advantages when you have one local partner to help you out,” he said. “It can be M&M, but not automatically so... it’s open. Renault and Nissan will have entirely separate marketing structures so that the Indian consumer does not get confused between the two brands.” There is considerable speculation, which is entirely unconfirmed, that Maruti could be Nissan’s Indian marketing and distribution partner because of the close links between Nissan and Suzuki worldwide.
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