Renault-Nissan, the French-Japanese JV is working towards developing new small engines that will power their future range of small cars,
including Nissan’s sub brand Datsun. To be priced in the range of Rs
2-4 lakh, building the engine locally will play a huge role in keeping
the costs of these new small cars low.
Indian Government levies duties of upto 60% on importing car engines. This will make it impossible for Renault-Nissan to offer small cars at competitive price. All other major automakers in the country such as Maruti Suzuki, Hyundai
Motors, Tata Motors and GM manufacture engines locally, this has gone a
long way in ensuring that they maintain prices of their small cars at a
cutthroat level.
Renault-Nissan are working towards increasing the local content in their cars. Currently, Nissan has achieved 85-88% localization in their cars, but for Datsun or the new Renault small car which too is under development, that will be no good. These new small cars will compete with the likes of Maruti Alto and Hyundai Eon, which are priced in the range of Rs 2-4 lakh. Renault-Nissan need a good 100%, or a figure very close to that, in order to launch their new small cars with competitive price.
Localizing parts will not only cut costs, but will also protect them from frequent currency fluctuations. Renault-Nissan is developing their new small engines currently in France and Japan, but these are being made using parts sourced from Indian vendors.
Nissan will introduce Datsun on 15th July 2013, while the car will be launched by first quarter of 2014, after it is showcased at the 2014 Delhi Auto Expo. After this, Renault plans to introduce their smallest and cheapest car for India by 2015. It will be priced in the range of $3,000 to $5,000, reports Wall Street Journal.
Indian Government levies duties of upto 60% on importing car engines. This will make it impossible for Renault-Nissan to offer small cars at competitive price. All other major automakers in the country such as Maruti Suzuki, Hyundai
Motors, Tata Motors and GM manufacture engines locally, this has gone a
long way in ensuring that they maintain prices of their small cars at a
cutthroat level.Renault-Nissan are working towards increasing the local content in their cars. Currently, Nissan has achieved 85-88% localization in their cars, but for Datsun or the new Renault small car which too is under development, that will be no good. These new small cars will compete with the likes of Maruti Alto and Hyundai Eon, which are priced in the range of Rs 2-4 lakh. Renault-Nissan need a good 100%, or a figure very close to that, in order to launch their new small cars with competitive price.
Localizing parts will not only cut costs, but will also protect them from frequent currency fluctuations. Renault-Nissan is developing their new small engines currently in France and Japan, but these are being made using parts sourced from Indian vendors.
Nissan will introduce Datsun on 15th July 2013, while the car will be launched by first quarter of 2014, after it is showcased at the 2014 Delhi Auto Expo. After this, Renault plans to introduce their smallest and cheapest car for India by 2015. It will be priced in the range of $3,000 to $5,000, reports Wall Street Journal.
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