Nissan Micra Moves to India

With numbers showing greater and greater increase in interest in the Asian market for the automotive sector, Japanese manufacturer Nissan has already announced it will boost production in China to meet the blooming demand. In addition, Nissan is getting ready to roll off the assembly line the first India-built Micra, but with a different goal in mind.

The manufacturer will begin production of the Micra at it new factory near Chennai, in India, sometimes in mid 2010. The facility will roll out some 200,000 vehicles per year, most of them intended for Europe.

So far, the European version of the Micra is being built in Sunderland, England, but the factory will soon be retooled to receive a small SUV that, Nissan says, will resemble the Qazana concept, aimed at taking on the Fiat Sedici and the Suzuki SX4.

As for the Micra, it will move, as said, to India. Still, according to Colin Dodge, a senior executive for Africa, the Middle East, India and Europe, taking with Autonews, some 60 to 70 percent of the Indian output will take to Europe.

"It's been difficult for us to make money on small cars in Europe. But we're not going to India just to lower costs. We want to be in the Indian market, and to be in India, you have to build cars there," Dodge was quoted as saying.

The Chennai facility was being built by Nissan in joint venture with ally Renault and was initially projected to produce 400,000 vehicles per year. Meanwhile, Renault pulled back from the venture, leaving only Nissan's share in the works. Still, the Japanese will "put down a second line" as soon as Renault feels it's time to come back in.