Renault-Nissan Plan India Factory for Budget Cars

Nissan Motor Co. and alliance partners Renault SA intend to invest about 30 billion yen ($321 million) to erect a plant in Chennai, India, that will begin building low-cost cars in the second half of 2014, The Nikkei reports.

The Toyko-based newspaper, which does not cite its sources, says the new facility will make cars for Nissan's revived Datsun brand and budget Renault-badged models currently being developed. Those vehicles will be sold in India and other emerging markets.

The partners also plan to develop a new 500,000-yen ($5,300) India-specific model to be produced at the new factory, according to The Nikkei.

The newspaper says the facility, which will have annual capacity of 200,000 vehicles, will be adjacent to an existing Renault-Nissan assembly plant that can build 400,000 units per year.