Join The Party: Nissan To Invest With Renault, M&M For Indian Plant

Nissan, Renault and Indian automaker Mahindra & Mahindra (M&M) announced Monday that the companies signed an agreement to build a plant in the southern Indian city of Chennai, Tamil Nadu.

The automakers plan to invest $902 million in the new plant, which will have a capacity of 400,000 units per year.

The facility will produce cars and SUVs for Renault, Nissan and M&M, as well as powertrains for Renault and Nissan. Production is expected to begin in the second half of 2009.

Mahindra will control 50 percent and Nissan and Renault will share the remaining 50 percent.

“I welcome this watershed agreement between the three global automotive players and the Tamil Nadu government,” said Thiru M. Karunanidhi, Chief Minister of Communications and Information Technology. “I firmly believe that the project’s commitment to innovation and technology will set new benchmarks for the Indian manufacturing industry and for the state.”