Nissan plans to set up Indian facility

Japanese auto major Nissan, which made its entry into the country through the completely built unit (CBU) route, is currently in the process of evaluating various possible locations for its Indian facility.

The company has already begun preliminary discussions with the foreign investment promotion board (FIPB) on its possible investment in India.

Toshiyuki Shiga, senior vice-president of Nissan Motor Company, was noncommittal when asked about the company's plans for India.

But sources in the industry confirmed that Nissan has indeed kicked off talks with some state governments. It is also weighing the option of entering a joint venture with a local company for its operations in India.

"I don't deny the possibility of setting up a manufacturing unit in India. At present we are in the process of studying the Indian market and needs of the Indian customer. Being a big market for our vehicles, we are serious about India. It is a part of our global strategy to expand into competitive countries," said Shiga.

He also said that Nissan sees India as an attractive destination to source auto components for its global activities. It also planning to outsource some of its back-office works to the country.

"Japanese companies have not opened up to India like the US-based companies when it comes to outsourcing. Nissan sees a great opportunity in India but we are yet to finalise a strategy," he added.

Nissan is riding its best-selling sports utility vehicle X-Trail into the country and will later diversify into the passenger car and then the light commercial vehicle segments.

The company has a models such as Cube, Cube Cubic and March in the B-segment which are possible entrants to the Indian market. The X-Trail is priced between Rs 19.7 lakh and Rs 23.8 lakh. It will be sold through three dealer outlets in Mumbai, Delhi and Chennai.