Nissan dumps Suzuki for Renault, M&M

Japanese auto major Nissan today said it has ended talks with compatriot Suzuki to set up a manufacturing plant in India as it was in discussions with French auto firm Renault and Mahindra & Mahindra.

"Nissan is committed to establishing a manufacturing presence in India as part of our global growth strategy. Nissan is in active discussions with Renault and Mahindra concerning a new industrial partnership, and will make a final decision within four months," the company said in a statement.

"In consequence, we will not continue discussions with Suzuki concerning a new industrial project in India," it said.

The company, however, reiterated that the previously announced agreement to work with Suzuki concerning original equipment manufacturer (OEM) supply from India of a new small car for sale mainly in Europe remained intact.

When contacted, Maruti Suzuki officials declined to comment on the development saying that the talks were held between its parent Suzuki and Nissan. Sources, however, said Maruti Udyog will make 50,000 units of small car a year for Nissan to be exported to Europe.

Nissan and Suzuki had, in June this year, announced expanding their business collaboration including sharing of manufacturing facilities in emerging markets starting from India. They had held discussions about jointly setting up a manufacturing plant largely for exports with a capacity of 2,50,000 units.