Renault-Nissan to Launch Engine Production in India

The Renault-Nissan alliance plans to begin making small gasoline engines in India roughly one year from now, The Wall Street Journal reports.

Adding local engine production will enable the partners to avoid India's 60% import duty on foreign-made powerplants.

The engines will be used to power new lines of low-priced vehicles being introduced by both companies in multiple emerging markets, according to the Journal.

Nissan's revived Datsun brand is expected to reveal its first model, a five-door hatchback, in India next week. The model, to be priced at $3,000-$5,000, will launch early next year in India, Indonesia, Russia and South Africa.

Renault says the new budget-priced car it is developing will join the company's lineup in India in 2015 at a price between $3,300 and $6,500.

The new vehicles will be produced at the factory operated by the two companies outside Chennai. Capacity there will expand by one-third to 480,000 this autumn. The complex already assembles the Nissan Micra and Sunny small cars and Renault's Duster SUV, Pulse small car and Scala midsize sedan.