Renault SA and Nissan Motor Co. are teaming up to engineer and market an 0.8-liter engine for India, a land with a long and storied history of loving small engines.
Considering the traffic and narrow thoroughfares that make road travel in India, the move to go small makes a lot of sense for the French and Japanese automakers. However, the problem with selling diminutive, lower-cost engines is that profit margins are smaller and the market is much more competitive.
The engine, once it is ready will be fitted into a Renault car that will debut in India in 2015. The total cost of the project will cost around $100 million. Speaking about the project, Alain Raposo, director in the Alliance Powertrain Planning Office of Renault-Nissan, said, “This engine is being developed from scratch in India.”
Currently, Suzuki Motor Corp. and Hyundai Motor Co. are the two largest carmakers in India.
