Nissan's Ghosn Says Mahindra Is Likely India Car Partner

Nissan Motor Co. Chief Executive Carlos Ghosn said Wednesday that Mahindra & Mahindra Ltd. will likely be its local partner for the Japanese company's low-price car project for the Indian market.

Speaking at a roundtable meeting with the media in Bangkok, Mr. Ghosn said Nissan is seriously studying the Indian project and will have sufficient information to make a decision on whether to start making a budget car when one of its main rivals in India -- Tata Motors Ltd. -- launches its own $3,000 low-cost car next year.

"Although we haven't finalized any deal yet, it's rather obvious that Mahindra is our Indian national partner," Mr. Ghosn said in response to a question on who might be Nissan's local partner for the budget car project. "We'll be ready when the (Tata) car comes to the market as we'll have enough information. If it makes sense we'll be ready to start (production of our own model)."

Small compact cars make up more than two-thirds of the Indian market. Analysts expect passenger vehicle sales in India to nearly double to two million units a year by 2010.

Mr. Ghosn also said Nissan's investment in new technologies such as lithium-ion batteries will help it narrow the gap or even put it ahead of competitors down the road, the Associated Press reported.

Quotes WSJ

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