Nissan has announced that the new Micra will be built at a new plant near Chennai in India.

The factory with an installed capacity of 200,000 units will becomes operational by June next year. Nissan predicts the European demand will account for between 60 to 70 percent of the total production.

“It’s been difficult for us to make money on small cars in Europe,” said senior executive Colin Dodge. “But we’re not going to India just to lower costs. We want to be in the Indian market, and to be in India, you have to build cars there.”

Source: autocar

Nissan also hopes to achieve a five percent market share in India through its new plant in India and also expects its alliance partner Renault to use the facility in due course.