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As the struggling Japanese brand Nissan suffered its first setback since Carlos Ghosn took over the company, it looks to increase its operations in India. Nissans outing in the Indian auto market is supported by its alliance partner Renault. Recently, the Alliance introduced the Logan in the growing Indian auto market. In the planned operation expansion that Nissan is set out to do, there are issues concerning their relationship with French partner Renault.

As part of Nissans expansion in India, Chief Executive Carlos Ghosn revealed that they are planning to turn India into a supply base. He explained the role that India will play in the future of Nissans supply base. During 2006, we made tangible progress towards the four key breakthroughs that are central to the Nissan Value-Up programme. One of these involves developing new sources for parts, machinery and equipment, vendor tooling and services in what we call leading competitive countries, says Ghosn. Sourcing bases are now established in China and Asean for Japan, in Mexico for North America, in Eastern Europe for Europe. To accelerate the progress, the next step will be to develop a new sourcing base in India. In fiscal 06, for Japan, North America and Europe, 15 per cent of our purchasing by value was sourced from LCCs. In 2007 we will take this to 24 per cent, he further explains.

Ghosn also said that they are not only going to increase their presence in the Indian auto market but they will also look for suppliers which will provide them with high quality parts. Auto motive components such as Nissan bug shields are what Nissan needs to deliver high quality vehicles to their consumers. We are going to India not only to contribute to the development of the Indian market but also to tap suppliers who are very efficient, said Ghosn. Renault is already sourcing from India with the Logan and Nissan will check with them and source locally for both Indian and global products. He pointed out that they are already taking steps to select which suppliers they will be working with. Already there is a common purchasing organization that is working on that called the Renault Nissan Purchasing Organization, says the Nissan CEO.