The Renault-Nissan alliance has announced that it will be investing Rs 5,000 crore to expand its facility in Chennai, Tamil Nadu. This investment is part of the alliances’ plan to go aggressive with the India plans.
The current facility in Chennai has a production capacity of 4 lakh vehicles annually, which is divided between Renault and Nissan. With this new investment, it will help the companies to focus more on the exports. Nissan has been going aggressive with its Datsun brand. After launching the GO and the GO+, it is gearing up the launch its most affordable car in India. Renault, on the other hand, is in the process of developing a car that is based on CMF-A platform.
"Renault-Nissan wants expansion of the existing plant and they are looking at a total investment of Rs 5,000 crore for the expansion. We already have a MoU with them of Rs 4,500 crore, and this will be in addition to that. Work has started and the timeline given to them is usually of seven years," said C V Sankar, additional chief secretary (industries department), Tamil Nadu.