South Asian Business news and information

Reuters reports:

Nissan and partner Renault on Friday signed an agreement for a $1.0 billion car and engine plant in southern India after a local partner dropped out, and expect to commence production from 2010.

Nissan, which has just two vehicles in the Indian market now, expects to have eight vehicles in the market by 2012, including commercial vehicles for which it has a venture with Indian truck maker Ashok Leyland, said Colin Dodge, senior vice president, general overseas market operations, Nissan.

The fast-growing markets of Brazil, Russia, India and China are a top priority for Nissan, as its main U.S. and Japanese markets saturate.

While signing the memorandum of understanding with the plant of Tamil Nadu, Colin Dodge admitted that the USA is the biggest car market in the world and its economic recession and weak dollar has affected the company. He said that it would not affect Nissan that much. He is hopeful that the economic boom in Brazil, Russia, China and Middle East may not equally but would compensate to sufficient amount for the USA market.

Currently, Japan’s third largest car producer is looking forward to produce four types of cars in the Chennai plant. This includes a hatch-back car model; the first ever produced by Nissan. Dodge also admitted the necessity to have a small size car to survive in the Indian market.

So many companies, so many cars; what will happen to India? Too many cars mean too much demand of fuel and too much air pollution. From now on, Indian government should focus on these issues? Otherwise, serious crisis can arise in future.

Related article:

Reuters