Last week, the Alliance confirmed the next step in its partnership with Bajaj Auto by signing an MOU to build an affordable four-wheel vehicle for India and other emerging markets. Although this was an expected milestone in a single program, it also represents a larger more significant strategic direction for the Alliance: mobility for all.
We see two major global trends emerging for the auto industry that will have a profound effect on our business over the coming decade. On one side, the growing need for vehicles that have a lower impact on the environment, particularly in the mature markets. On the other side, a growing demand for affordable mobility, primarily driven by emerging markets:
- The Renault-Nissan Alliance is already three years into a substantial enterprise-wide venture to take leadership in zero-emission mobility. In just five months time, the Alliance will launch the Nissan LEAF, the first of eight confirmed electric vehicles. Vehicles from Renault will launch from 2011.
- In pure volume terms, the move towards affordable mobility represents a vast consumer segment for the industry. Consider the potential: India has a population of over 1 billion and a projected auto industry growth that will see total industry volume growing to 6 million cars in the next 10 years. Provided that you can come up with the right product at the right price, India represents a huge opportunity.
Our project with Bajaj will help the Alliance to compete effectively and efficiently in the Indian market and also other emerging markets where there is a growing demand for affordable personal transportation.
When these two trends start converging, they will create new market opportunities and be a turning point of personal mobility. We see increasing interest in China for electric vehicles at the same time as mobility is rapidly becoming accessible for more people. It is maybe here we can first see a convergence of both trends in a single market.
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