Maruti may make one lakh cars for Nissan  ( June '30,2006, Daily News & Analysis)

Maruti Udyog (MUL), India’s largest passenger car manufacturer, is likely to manufacture one lakh cars for Japanese automaker Nissan at its upcoming facility at Manesar in Haryana.

Managing director Jagdish Khattar (pictured) hinted the Nissan deal would be to produce upwards of 1 lakh Nissan cars. This means Maruti would be hiking the manufacturing capacity at the Manesar unit from the planned 1 lakh units per annum.

“The principals (Suzuki and Nissan) are talking (about the manufacturing deal). I don’t know what timeline they have in mind. If we manufacture for them (Nissan), then it has to be outside the 1 lakh capacity we are planning for ourselves,” Khattar said, who was in the city to inaugurate MUL’s 15th dealership in the city.

However the deal might not include marketing alliance.

It may be recalled that earlier this month, the two Japanese auto majors - Nissan and Suzuki - announced a global production alliance, which will see Nissan supply mini vans to Suzuki on an OEM (original equipment manufacturer) basis starting from 2006-end. The deal also included Suzuki’s commitment to supplying a mini vehicle to Nissan on an OEM basis. MUL is 54% owned by Suzuki.

Under its original expansion plan, MUL is setting up a new assembly line with 1 lakh units per annum capacity a diesel engine unit with another 1 lakh units capacity with total investments of about Rs 2,900 crore. Both the facilities are expected to come up by the end of the year, which would also mark Maurti making an entry into the diesel car market.

Khattar said MUL would offer CRDe (common rail diesel engine) based cars for which Bosch has been selected as a partner. On reports of Maruti entering into a component manufacturing joint venture, without providing details, Khattar said the company encourages ancillary units to set up shop in the vicinity.

“We have 600 acres in Manesar and we encourage component manufacturers to come there.”