story in India is linked to that of the Alliance. The Alliance, as everywhere
else in the world, is all about Nissan and Renault. Tremendous synergies
between the two companies have resulted in massive advantages to both the
when the alliance between Nissan and Renault started in late 1990s, both
companies were looking for synergies like common platforms, components,
manufacturing, marketing, etc. While in different countries one brand is
stronger than the other (example, Nissan is much stronger in Japan, while
Renault is stronger in France), in India it’s a unique first model case for the
Alliance. Renault and Nissan were both latecomers in the country.
emphatic about the joint venture plant in India is Toshihiko Sano, CEO and
Managing Director, Renault Nissan Automotive India Private Ltd. “The Chennai
plant is the first plant of the Alliance. The next in line is Russia. Both
Renault and Nissan already have synergy efficiencies. We share the cost of
investment. New model launch investments are also shared. This is just the
phase I. Still we have scope to increase this synergy efficiency. Both Renault
and Nissan have their own unique characteristics. The customer is not bothered
about how a car is produced. He is bothered about quality. Another area we can
look at is sharing of parts and making it more cost effective. It would be a
challenge for the design departments of both the companies. I think we still
have a lot of opportunity to reduce cost and also improve quality,” says Sana.
the Oragadam plant, according to Sano, an Alliance Intelligent Manufacturing
System (AIMS) is followed. “We have broadly two assembly lines. On the main line
we can produce any type of model randomly like the Terrano, Duster, Sunny and
Scala. We have unique parts for each of the vehicles so sub-assembly is
different. In Sunny we have export models both right hand and left hand. The
Duster is exported to UK as Dacia brand. It is also exported to South Africa.
So, on the main line we can do six types of vehicles. On this line we can also
produce the Evalia and Stile. The No.1 line has a capacity of 240000 per annum,”
Sunny model is exported to Middle East, Asia, Africa, New Zealand, among other
countries. “The No.2 line also has a capacity of 240000 and produces Micra,
Pulse and now the Datsun GO. For the European region we are exporting Micra
from here. We are exporting to 102 countries. Nissan and Renault have own
production ways and we have combined them here. We call it the Alliance production
way,” notes Sano.
the plant is operating at around 250000 units per annum But the Datsun GO is
like a breath of fresh air and the company is looking at even increasing its
capacity at the plant. “We have already started exploring the possibility of increasing
our capacity. It all depends on Datsun GO sales. If the next six months sales
increase, then the management will decide on capacity expansion,” says Sano.
informs that there around 247 suppliers for the Alliance. “Localisation levels
are increasing every month. The tier I suppliers are mainly from India. The tier
II suppliers are mainly from abroad. More than 100 suppliers are close to
Chennai. Three years ago we had only 97 suppliers, now we have 247,” he adds.
Sano is also excited of the fact that parts exports business of the Alliance is
improving. “The parts exports business is also increasing. Most of the parts
are exported to Japan, followed by China and then Thailand. Some Indian suppliers
have improved to reach global standards,” he affirms
Read detailed story in April 2014 issue of
Motown India magazine
Photography: Mohd. Nasir
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