Maruti to build nissan small car in India


Suzuki Motor of Japan announced plans to use its Indian arm Maruti Udyog to develop and build mini cars for home-grown rival Nissan motors. Under the agreement, Maruti would manufacture a small car that would be sold under the Nissan badge, primarily in Europe.

The optimum infrastructural parameters India is having for starting large Industrial ventures where the products manufactured can be globally competitive. This aspect is attracting world industrial giants towards the country and this is fast gaining momentum. Indian Finance minister P Chidambaram’s efforts to make India the global hub for small cars ifs finally gathering pace.

Though officials of both Suzuki and Nissan said no decision has yet been made on whether the same car would be marketed in India as well under the Nissan badge, industry watchers and sources pointed out that new cars—expected to be rolled in 2008—would also mark Nissan’s entry into the mainstream car market in India.

The MD of Maruti said that It is too premature to talk about which markets this car will be sold. For the time being the plans are Maruti’s new manufacturing facility will be used to build this car from Nissan. Financial and other details of the agreement are being worked out.

The announcement is about cross-manufacturing between Nissan and Maruti and in this India through Maruti is really playing Global.

However, sources said that Nissan is expected to straddle this arrangement to ride into the burgeoning car market in India. An analyst said that It makes commercial sense to use this agreement and Maruti manufacturing cars under the Nissan badge. Nissan already has a similar arrangement with Suzuki for the Japanese market.

Nissan and Suzuki have expanded this tie-up now, including sharing manufacturing facilities in emerging markets such as India. Under the agreement, Nissan will supply a minivan to Suzuki on an original equipment manufacturing basis, and Suzuki will build another mini vehicle for its partner, both vehicles aimed at the Japanese market.

From 2008, Nissan will also supply a compact pick-up truck to Suzuki, mainly for sale in North America. Suzuki in return will provide a new ‘A’ segment vehicle for Nissan, mainly for sale in Europe. The companies said they had no plan to form a capital tie-up.

In the Budget this year, the government had announced an 8% excise reduction for small cars built in India. The policy decision was made with the intention that this benefit would help make India the hub for small cars. It seems the announcement by Suzuki and Nissan is the first step in that direction.

We have selected this write up to show how rivals can take advantage in Global marketing by making the right moves and utilizing the strong points of each other. Nissan and Suzuki have set an example in this direction. This is real Globalization from Indian soil fulfilling the conditions of benefiting the businesses and benefiting the region or regions. Here the benefit is even extended to the customer as such type of cooperation make the car affordable even by middle class segment. We foresee many such tie ups in and from India!!!