Renault Planning To Exit From Chennai Project

Renault is planning to exit from Chennai project.Renault,Mahindra and Nissan had planned this 4,500Cr project in outskirts of Chennai.This tri-party alliance became bi-party once Mahindra and Mahindra opt to be out,citing policy reasons.But Renault-Nissan further proceeded with 50:50 venture.But now there are very firm news inputs that Renault also planning to exit from Chennai project.Irrespective of all these developments Nissan’s projects are on right track.

Bloomberg quoted CFO of Renault,Thierry Moulonguet “Renault may pull out of a joint factory project in Chennai, India, with Japanese affiliate Nissan. It’s possible that we abandon the project completely. It depends on market conditions”.Last week there were reports that Nissan-Ashok Leyland is defering some of their plans for atleast one year.

So now this news gives an obvious question, what is the fate of Mahindra-Renault Logan?.But we believe the Mahindra-Renault Logan will continue rollout from Mahindra’s Nashik facility.In Chennai project Renault-Nissan alliance has invested Rs.1,000Cr till now.

Yet another must watch will be Bajaj-Nissan’s ultra low cost car.Will it see the day light in Indian roads in near future.Will Bajaj and Nissan can challenge home grown Tata Nano?.Will Nissan is capable enough to take the project to a destination?.Now only questions, only time can answer them!