Nissan to start car production in India

Japan’s second largest carmaker will spend over $800m on new factories in India that will produce cars for the domestic and European market. Locations are currently being scouted for the factory, but the decision could be made as soon as this month.

The factory will churn out 200,000 small cars a year, with the majority of them having engines in the 1L class. Around 70% of these will be exported to Europe, paving the way for cars priced under €7000. The first phase of the factory will be complete by 2009, but Nissan plans to expand capacity to 400K units and more engine sizes further down the line.