Renault-Nissan alliance is planning to invest about $320m (JPY30bn) to set up a low-cost vehicle manufacturing plant in India
The alliance is expected to invest the amount to construct a second manufacturing plant at the company's site near Chennai city to manufacture the Nissan's Datsun brand and low cost Renault models that are under development, according to Japan's Nikkei business daily.
Nissan spokesman was quoted as saying by the Nikkei, "we have a project to produce low-priced vehicles in our existing Renault-Nissan joint plant, but we cannot comment on the report further."
The plant is expected to be completed by the end of 2014 and have an annual production capacity of 200,000 units.
Earlier, the alliance had invested about $1.1bn to start the construction of its vehicle plant in Chennai that began production in 2010 with an annual production capacity of 400,000 units.
