 "Renault-Nissan Alliance to double investment $2.5 bn in India")
Meanwhile, the Alliance also said that it is developing products based on new platform called CMF-A (common module family).
Addressing a Media roundtable at Chennai the Alliance CEO and Chairman Carlos Ghosn said the Alliance is developing a new platform called CMF-A (common module family) to take on the competitions including Maruti and Hyundai in India at the entry level car segment as well as cater to the high growth markets like Indonesia, Russia Brazil.
The new platform will be entirely designed and engineered in India and the first product will be rolled out by 2015 here.
“We are breaking new ground with CMF-A to meet and exceed the high standards of consumers in the world’s fastest growing economies – particularly people buying a new car for the first time,” Ghosn said.
He added the Renault Nissan Technology Business Centre at Chennai designing the product since last year.
This platform can be accessed by all the brands of Alliance company including Nissan , Renault and Datsun, said Ghosn.
“Any of our brands can use this platform to make cars and this product will not only for India but also for emerging markets. This is the common platform where each brand can utilise to their choice”, said Ghosn.
He added the new platform offers high degree of flexibility, significant body style and powertrain variations which can be matched to specific customer needs and preferences both in India and high growth market.
Production of vehicles within the CMF-A scope will begin in 2015 at Oragadam.
“We will reveal additional details, including pricing details and product volume, closer to the start of production”, he said.
This platform will also help the company to achieve its internal target of around 15% market share in India.
Initially two products will be rolled out from this platform, as all the family members will be allowed to make their own products, we expect a lot of products coming out of this platform,” he said
Ghosn said that he expects a 5% market share for Renault-Nissan combine in India in 2013 as India has among the lowest automobile penetration in world.
To a question of company’s investment plan, he said, Renault-Nissan Alliance invested around $2.5 billion in India and this will be doubled over the next five years’ mainly to augment the capacity and on developing and launching new products.
“If a product is successful in India, it will be successful in other high-growth markets. The concept of ultra low cost car is a great idea for India and other emerging markets”, he replied to a question whether Tata’s Nano has inspired the company to focus on low-cost cars.