Renault has announced building an engine and transmission facility with its Japanese partner Nissan, adjacent to its Oragadam plant in Chennai.
The Engine and transmission, produced in this facility will be supplied to M&M for the Logan, which will help in reducing the cost of the struggling sedan further. The powertrain of the car, which has to be imported by M&M from Reanult’s plant in Romania and Spain accounts to 35-40 % of the total cost of the car.
Rajesh Jejurikar, chief of operations, automotive division, M&M, said, “Renault has independent plans for making engines locally. We will source the engines for the Logan from them at later stages.”
A Renault spokesperson said, “Having an engine and transmission plant in India is a part of Renault’s long-term strategy. This plan was put on hold when the financial environment had deteriorated but now it has been revised. However, there is no final decision taken on the time line for the new facility.”
The new plant will be providing engines for Renault, Nissan and M&M. The engines used by the companies will be tuned according to their requirements. Renault and Nissan are also planning to share platforms and technology for their new cars to help reduce the costs.