By on February 22, 2013

The revived Datsun brand will get its first plant in India. Renault-Nissan announced plans for a new factory in India, and will invest 250 million euros to build the plant.

The factory will be located in Chennai, with capacity for around 200,000 vehicles annually and is expected to come online by mid-2014. The first vehicle produced will be Datsun’s 5000 euro model, followed by an even more ambitious model priced at 3000 euros. Vehicles will be sold in India and exported to  Indonesia and Russia, but the Middle East, Africa and even Europe have been mentioned as possible markets

The 5,000 euro car is expected to compete with lower end offerings from Maruti Suzuki, India’s pre-eminent auto maker. The 3,000 euro car is said to be similar to the Tata Nano – an ambitious exercise in basic transportation that ultimately flopped. Recent estimates suggest that as much as 35 percent of Renault’s global sales come from low-cost cars, specifically the Dacia range.

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