Nissan and Renault delay India Project

Japan's third largest auto maker, Nissan is reviewing a broad range of auto projects in pipeline with the aim of reducing capital expenditure to improve its cash flow. A planned joint venture of Nissan and Renault will start as scheduled in the first half of 2010 but at one shift rather than the previously planned two.

India's Ashok Leyland Ltd. said it that the start of the production of truck as a joint venture with Nissan is delaying by six months, to mid-2010, it was blaming that delay in project is due to getting the land for the project. A Nissan spokesman said that the downfall in truck sales also responsible for delay. A Nissan spokeswoman said that the other projects in India, including the joint venture between Nissan, Renault and Bajaj Auto Ltd. to sell a $2,500 car from 2011, would also go ahead as planned.

Nissan and Renault are still bit players in the Indian car market, and they have wide range of projects, from manufacturing passenger cars to commercial vehicles, as they are trying to catch up with leaders such as Maruti Suzuki India Ltd., Tata Motors and Hyundai Motor Co.