Renault-Nissan plans to manufacture diesel engines in India

19/11/2011 - 06:03 | ,  ,  ,   | Kaustubh Shinde

In these turbulent times, Hyundai India may have backed out of establishing a diesel engine plant. But that doesn’t stop Renault-Nissan from increasing its foothold in India. According to Business Line, the partners will soon start their efforts to establish a diesel unit in the Oragadam plant.

Renault Pulse YELLOWThe investment is expected to near to a few hundred crores with the  annual capacity of 2 lakhs engines supplying to both Nissan and Renault. The capacity can be further expanded to 4 lakh engines if required.

The diesel unit couldn’t have come at a better time as the Indian auto market is experiencing a major shift in buying behavior. Majority of the population is opting in for a diesel car due to the huge difference in the petrol and diesel pricing. This diesel engine unit signifies Renault-Nissan’s commitment to the Indian market.

Nissan is looking forward to double its sales figures in 2012 and diesel cars will drive that growth. The company is looking forward to 70 dealer network in the current financial year and plans to double it by the next one.

According to the report, the company plans to showcase a diesel version of their popular sedan - the Sunny at the 2012 Auto Expo. Initially, Nissan will import the diesel engine for the Sunny from Europe and in the future the diesel plant will meet the requirement.

Source: BusinessLine

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