M&M to make cars in India with Nissan, Renault

Monday, 26 February 2007, 06:00 Hrs
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Mumbai: India's leading utility vehicle maker Mahindra & Mahindra Ltd (M&M) will join Japan's Nissan Motor Company and France's Renault SA to invest in a 40 billion ($902 million) car project in India, the companies said on Monday.

M&M will have an equity holding of 50 percent with Nissan and Renault holding the remaining shares, they said in a joint statement.

The joint venture, which will set up a 925-acre car factory in Chennai, will have a capacity of 400,000 vehicles in the next seven years, it said.

Renault, which already owns 44 percent shares in Nissan, will contribute its expertise in engineering and manufacturing. Nissan, a late entrant in the Indian car market, will contribute with its worldwide export opportunities and manufacturing technologies, the statement said.

"Mahindra will contribute its in-depth understanding of the Indian market and the supplier base. Production of cars in the new plant will start in the second half of 2009," it said.

"Through the strong partnership of Renault and Mahindra, Nissan is able to leverage the alliance and gain a rapid entry advantage for local manufacturing in India," said Nissan executive vice-president Carlos Tavares in a statement.

"Nissan was able to evaluate several different options for our first manufacturing base in India - but the advantages of working with our alliance partner and their local Indian partner was compelling," he said.
Source: IANS
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