Nissan Motor to Source Auto Parts from India

Nissan Motor to source auto parts from India The Financial Express: September 17, 2009

Mumbai: Japanese automaker Nissan Motor Company plans to source auto components worth $20 million during 2010 from India for its operations spanning countries including Thailand, Japan and China.

The company is looking at sourcing components including engine pistols, clutches and start-up motors from India, said Kiminobu Tokuyama, chief executive officer and managing director, Nissan Motor India Private Ltd. By 2012, the sourcing is expected to touch $ 40 million.

Despite its French alliance partner Renault deferring its India plans for the time being, Nissan said its joint venture with Ashok Leyland and its plans at Chennai greenfield plant are on track.

“We are moving on schedule and plan to start the Chennai plant by May next year,” said Tokuyama. He pointed out that of the yen 350 billion investments to be made by the company globally in financial year 2009-10 (as per the company’s financial calendar), “the maximum investment has been routed to India.”

He, however, did not quantify the investment lined up for India. The first product to be rolled out of the Chennai plant will be a hatchback from the entry level platform (V platform) on which the Micra/March is produced. The hatchback will be launched by the end of June next year and will be followed by a sedan model in 2011. The company has not taken a call on the third model from the same platform for the Indian market.

Talking about exports from India, Tokuyama said that the company is looking at attaining a volume of 110,000 units of the entry level model (Micra/March) by 2011 and 180,000 units in the future. The name of the entry level model is yet to be finalised. On Wednesday, the company launched the new Teana and X-Trail at a price range of Rs 21.03-25.40 lakh and Rs 20.81-25.08 lakh (ex- showroom New Delhi), respectively. The two cars will be imported as completely built units (CBUs) and the company has no plan to assemble them here. The third CBU import from the company will be sports car 370Z that hits the market early next year.

“We plan to launch nine models by 2012. We see our presence across in commercial vehicles, sedans, sports cars and entry level cars. We are looking at attaining a market share of above 5% in the country,” he said. The company indicated that there will be five India made models introduced in the market.

At the start of production stage, the Chennai plant will have an installed capacity of 2 lakh units per annum, which can be taken up to 4 lakh units. Currently, the company has five dealers in the country, which will be taken to 55 by 2012.

On its joint venture with Ashok Leyland, Tokuyama said, “At this point, I can say that the project is progressing well.” Indicating that the greenfield option is still on for the two companies, he said that the immediate plan is to use the “existing facilities” to cater to the light commercial vehicle project roll out.