The Hindu Business Line : Will Nissan revive its alliance with Suzuki?

Synergies
Based on its global contract manufacturing tie-ups of similar products and Suzuki's expertise in the A and B segment (that is crucial for Nissan's entry in the same segments), there is a possibility of a revival between the two auto majors, said analysts.

Mumbai , Dec. 11

Nissan plans to be a volume player in the Indian market and is looking at three manufacturing options to sell 1,00,000 cars by 2009.

Senior officials of Nissan told Business Line that the first option could be setting up a greenfield venture with the second being a possible tie-up with the extant Renault-Mahindra joint venture. The third, and perhaps most important, part of their gameplan could be a possible regrouping with Suzuki.

Nissan and Suzuki called of their alliance in India recently but senior officials at Nissan have not ruled out the possibility of a joint venture with Suzuki.

In India, the alliance is currently limited to an export order of 50,000 units from Suzuki for Nissan's European market.

Reciprocal agreements

The two have reciprocal agreements to cater to the Japanese market. Nissan will supply a minivan to Suzuki on an OEM (original equipment manufacturer) basis and Suzuki will, in turn, supply its mini-vehicle to Nissan on an OEM basis. Both products are for the Japanese market. From 2008, Nissan will supply a compact pick-up truck to Suzuki on an OEM basis for sale mainly in North America. Suzuki will provide a new A-segment vehicle for Nissan on an OEM basis for sale in Europe.

Segment strength

Nissan has a strong presence in the A and B segments of the global auto market. It has the Moco and Otti with a 660cc engine in Japan which is most suitable for the A plus-segment in India while the March with its 1.4-litre engine (probably will be de-tuned to a 1.2-litre engine to take advantage of our tax laws) fits the B plus segment, said experts.

Apparently, Suzuki Motor Co manufactures the `Moco' for Nissan in Japan and is the same car that was recently launched in India as the new Zen Estilo known as Suzuki's MR Wagon in Japan.

Based on its global contract manufacturing tie-ups of similar products and Suzuki's expertise in the A and B segment (that is crucial for Nissan's entry in the same segments), there is a possibility of a revival between the two auto majors, said analysts.

While Nissan is conducting studies on various models suitable for the Indian market, it has the option to choose from the Renault stable too.

Nissan is about to launch the Nissan Maxima (otherwise known as the Nissan Cefiro or the Teana) in India. According to sources, the company is about to send the vehicle to ARAI (Automotive Research Association of India) for getting a roadworthiness certificate.

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