The electric vehicle market is rapidly growing. Providing a level playing field for established automakers to compete with relatively newer companies like Tesla and BYD. However, established companies do not intend to leave the market to these newcomers. Lastly, Nissan Motor and Renault have joined forces to invest $600 million in the production of six new models in India, including two electric vehicles. here are the details…
Nissan, Renault to Invest $600 Million to Make Six New Models, Including Two EVs, in India
Nissan and Renault have announced a $600 million investment to make six new models in India. The move is aimed at boosting their falling market shares in the country and taking advantage of its growing global importance as the third-largest car market in the world. As part of their revamped alliance, the two companies will closely cooperate in three markets, including India, Latin America, and Europe.
The six new models will be built on joint platforms, allowing for shared components and engineering, and will include two electric vehicles, the first of their kind in India. The remaining four models will be sports utility vehicles, all to be manufactured at the Chennai plant in southern India, where the companies have a joint ownership and a research and development center.
Despite having a combined market share of 3% in India in 2022, the investment holds great significance for both Nissan and Renault. While Nissan has a significant presence in China, the United States, and Japan, Renault does not, making India a crucial market for its success. The Chennai plant has the capacity to produce 500,000 vehicles a year, but the companies sold only 87,000 and 35,000 vehicles respectively in India last year.
The automotive industry in India witnessed a 23% surge in sales last year, reaching 4.4 million vehicles and overtaking the Japanese market. This investment by Nissan and Renault is a strategic move to capture a share of this rapidly growing market and use India as a base for exports.
Nissan and Renault’s $600 million investment in India to make six new models, including two EVs, is a significant step in addressing their falling market shares in the country and taking advantage of its growing importance. With a revamp of their two-decade-old global alliance and a focus on cooperation in India, Latin America, and Europe, the two companies aim to increase their presence and capture a share of the rapidly growing automotive market.
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