Chennai, March 17 A little after quarter-past-noon on Wednesday, an orange Micra followed by a red coloured one rolled on to a platform marking the inauguration of the Renault-Nissan combine's greenfield plant at Oragadam, about 50 km south-west of Chennai.
The Chief Minister, Mr M. Karunanidhi, earlier, pressed a button on a remote control to inaugurate the assembly line to the applause of a large gathering at a makeshift hall at the plant.
The plant, the first greenfield facility by the Renault-Nissan alliance, will have an initial capacity of two lakh cars a year, going up to four lakh cars in the next five years. The alliance will invest about Rs 4,500 crore over seven years in the facility, Renault Nissan Automotive India (P) Ltd.
Mr Carlos Ghosn, Chairman and CEO, Renault-Nissan Alliance, said the Chennai plant would play an important role in the alliance's global strategy and would be an export hub for the new global cars.
The new Micra, production of which would begin in May for the domestic market, would be made in Thailand, China and Mexico also. From the Chennai plant, it would be exported to Europe, West Asia and Africa.
He said the group anticipated India's passenger car market to triple in the next 10 years from two million units a year currently. The Renault-Nissan alliance, with its local partners in India, hoped to have the right brands to achieve their long-term goals.
Mr Karunanidhi said with this plant, Tamil Nadu was home to seven of the top 20 global automobile manufacturers. Since May 2006, the Government had signed 25 MoUs and issued orders for another 12 industries, with a total investment of Rs 46,091 crore, generating 2.22 lakh jobs. He said he looked forward to the day when the plant's capacity would be increased to one million cars.
The Deputy Chief Minister and Industry Minister, Mr M.K. Stalin, said Chennai would have a capacity to produce 12.80 lakh cars and 3.50 lakh commercial vehicles a year. Tamil Nadu had the largest auto component base in the country, accounting for 32 per cent of the production capacity.
Mr Yoshiro Mori, Chairman, Japan-India Association, said the number of Japanese companies in and around Chennai had increased from 65 in 2007 to 170 now. The Japan External Trade Organisation would open its regional office in Chennai in May.
Source : Business Line