Nissan and Renault will crank out independent marketing strategies in India to avoid confusion at the retail end.
This means that the two companies are likely to have separate local partners while sharing the same greenfield plant along with Mahindra & Mahindra to make their cars.
In an exclusive chat, Nissan-Renault big kahuna Carlos Ghosn said Nissan will look for its own partner, which may be Mahindra but not automatically so. “Nissan will have a partner to market and sell its cars in India because there are a lot of advantages when you have a local partner to help you out,” he said.
“It can be M&M but not automatically so...it’s open. Renault and Nissan will have entirely separate marketing structures so that the Indian consumer does not get confused between the two brands.”
There is considerable speculation, which is entirely unconfirmed, that Maruti could be Nissan’s Indian marketing and distribution partner because of the close links between Nissan and Suzuki worldwide.
Maruti is making a small car for Nissan, on a contract manufacturing basis, for the Indian and European markets. It plans to roll out 50,000 units per year.
Sources said at a recent supplier meet, Nissan and Renault indicated that Renault may also consider the Megane for the Indian market in both two- and four-wheel drive options.
As for Nissan, it’s looking at a small car and a mid-size sedan and the options include the Micra and Teana, industry sources said. But these products will be sold through separate marketing channels.
The partnership between Renault and Mahindra may in the future take on the kind of product-sharing arrangement that Tata and Fiat are following outside India, said M&M vice-chairman & MD Anand Mahindra. That has been discussed and it’s something both partners are looking at.
“I would be delighted if there are products in the M&M stable that Renault and Nissan find interesting to help them carve a niche in some overseas markets,” Mr Mahindra said. “That would be a real opportunity for us and it’s on the table.
In fact Carlos (Ghosn) brought it up,” he said. Mr Ghosn also said Renault would make 250,000 engines in India but is not looking at transmission systems now, though it may consider this in future. A ramp-up of both car and engine capacity is also a possibility.
“We have a tendency to be cautious when we are looking at volumes, particularly when we enter a new country,” he said. ”It’s not that just because we are talking about 250,000 engines that’s what is going to happen. But first let us ensure that on the basis of 250,000 engines, we are going to be able to do something cost-competitive and efficient.”
The greenfield facility near Chennai, to be shared by the three partners, will have a capacity of 400,000 units by 2013-14. The engine plant, with a capacity of 250,000, is a 100% Renault subsidiary.
As for transmission systems, “it’s not a priority but that doesn’t mean it will not come”, he said. “But for the moment we are focusing on engines because we want to make sure the localisation works out right,” he added.
This means that the two companies are likely to have separate local partners while sharing the same greenfield plant along with Mahindra & Mahindra to make their cars.
In an exclusive chat, Nissan-Renault big kahuna Carlos Ghosn said Nissan will look for its own partner, which may be Mahindra but not automatically so. “Nissan will have a partner to market and sell its cars in India because there are a lot of advantages when you have a local partner to help you out,” he said.
“It can be M&M but not automatically so...it’s open. Renault and Nissan will have entirely separate marketing structures so that the Indian consumer does not get confused between the two brands.”
There is considerable speculation, which is entirely unconfirmed, that Maruti could be Nissan’s Indian marketing and distribution partner because of the close links between Nissan and Suzuki worldwide.
Maruti is making a small car for Nissan, on a contract manufacturing basis, for the Indian and European markets. It plans to roll out 50,000 units per year.
Sources said at a recent supplier meet, Nissan and Renault indicated that Renault may also consider the Megane for the Indian market in both two- and four-wheel drive options.
As for Nissan, it’s looking at a small car and a mid-size sedan and the options include the Micra and Teana, industry sources said. But these products will be sold through separate marketing channels.
The partnership between Renault and Mahindra may in the future take on the kind of product-sharing arrangement that Tata and Fiat are following outside India, said M&M vice-chairman & MD Anand Mahindra. That has been discussed and it’s something both partners are looking at.
“I would be delighted if there are products in the M&M stable that Renault and Nissan find interesting to help them carve a niche in some overseas markets,” Mr Mahindra said. “That would be a real opportunity for us and it’s on the table.
In fact Carlos (Ghosn) brought it up,” he said. Mr Ghosn also said Renault would make 250,000 engines in India but is not looking at transmission systems now, though it may consider this in future. A ramp-up of both car and engine capacity is also a possibility.
“We have a tendency to be cautious when we are looking at volumes, particularly when we enter a new country,” he said. ”It’s not that just because we are talking about 250,000 engines that’s what is going to happen. But first let us ensure that on the basis of 250,000 engines, we are going to be able to do something cost-competitive and efficient.”
The greenfield facility near Chennai, to be shared by the three partners, will have a capacity of 400,000 units by 2013-14. The engine plant, with a capacity of 250,000, is a 100% Renault subsidiary.
As for transmission systems, “it’s not a priority but that doesn’t mean it will not come”, he said. “But for the moment we are focusing on engines because we want to make sure the localisation works out right,” he added.
No comments:
Post a Comment