Carmakers to manufacture in Chennai

Mahindra, Renault and Nissan have announced that the Indian city Chennai will be the location of what will potentially be one of the largest automotive production sites in India. The site, a result of an MOU signed by the manufacturers, is planned to have an installed capacity of 400,000 units per year, seven years after its initial production.



The automotive companies are committed to investing a minimum of €686m in the site during the next seven years, with an equity holding of 50 per cent by Mahindra (M&M) and 50 per cent by Renault and Nissan. The industrial complex will provide vehicle production for each carmaker, plus a powertrain facility for Renault and Nissan. The MOU will facilitate M&M and its partners Renault and Nissan to manufacture passenger cars and SUVs in the 400 hectare facility.



A range of products aimed at the Indian market will be manufactured at the new production site. Production is expected to begin in the second half of 2009.



Chennai was chosen as the location for the new production site for reasons including its well developed automotive and components industry, high education levels in its workforce, and its overall infrastructure including its port facilities. The companies say the addition of this greenfield project will help make Chennai a global player in the automotive business.