Renault-Nissan Alliance has partnered with Russian partner AvtoVAZ to commence the production of a second engine in Russia.
This move by the company is in response to overcome decline in Lada car sales in a market and aimed at overtaking Germany within two years.
The new 1.6l engine will be built at the AvtoVAZ plant in Togliatti starting this week. The production will be expanded to a second petrol engine.
The company will use the new 1.6l engines produced in Togliatti to power the Renault Logan sedan, Duster SUV and Sandero mini models, along with Nissan's Almera and the Lada Largus.
In November 2013, The Renault-Nissan Alliance and Japanese commercial vehicle manufacturer Mitsubishi Motors announced a partnership to explore several new projects covering shared products, technologies and manufacturing capacity among the automakers.
It has been agreed to expand that the partnership between Nissan and Mitsubishi Motors could be expanded across the broader Renault-Nissan Alliance.