Nissan to set up a digital hub in Kerala

The Japanese automaker will set up its first and only digital innovation hub, Nissan Knowledge City, at Technocity in the state capital, Thiruvananthapuram; The digital hub will be a research and development facility that will be shared by the Renault-Nissan-Mitsubishi Alliance

June 26, 2018

The facility, Nissan’s fifth IT centre globally after the ones in Japan, the USA, China and France, will focus on electric and automated vehicles, using Artificial Intelligence (AI), cognitive analytics, machine learning and other technologies

The digital hub will be shared by the Renault-Nissan-Mitsubishi Alliance, a Franco-Japanese partnership of automobile manufacturers. The facility will create around 3,000 direct jobs and many more indirect employment

Automobile industry in India is the world’s fourth largest. Indian automotive industry (including component manufacturing) is expected to reach US$280 billion by 2026; The industry received FDI worth US$18.4 billion over 2000-2017

A number of foreign car manufacturers, representing premium to mass-market segments, have taken up vehicle assembling and car parts manufacturing in India owing to the advanced and cost-effective manufacturing environment

Japanese carmaker Nissan Motor Co has planned to set up its first and only digital innovation hub, Nissan Knowledge City, in the Indian state of Kerala, as per news reports on June 26th, citing local government and company sources. The State Government will allott around 70 acres of land for the research and development facility at Technocity in the state capital, Thiruvananthapuram. The facility, Nissan’s fifth IT centre globally after the ones in Japan, the USA, China and France, will focus on  electric and automated vehicles, using Artificial Intelligence (AI), cognitive analytics, machine learning and other technologies. The hub will be shared by the Renault-Nissan-Mitsubishi Alliance, a Franco-Japanese partnership of automobile manufacturers. The facility will create around 3,000 direct jobs and many more indirect employment. Nissan is expected to sign an agreement with Technopark in relation to the facility by July.

The latest investment in India from a foreign carmaker will reinforce confidence in Government of India’s Make in India initiative. A number of foreign car manufacturers, representing premium to mass-market segments, have taken up vehicle assembling and car parts manufacturing in India owing to the country’s advanced and cost-effective manufacturing environment. Foreign carmakers’ investment in India has also been driven by the nation’s fast-growing car market aided by strengthening national economy as well as consumer affordability. As a result, foreign carmakers, from Mercedes, Audi, BMW to Ford, Toyota and Honda, have set up units in India. The automobile industry in India is the world’s fourth largest. Indian automotive industry (including component manufacturing) is expected to reach as much as US$280 billion by 2026. The industry has received FDI worth US$18.4 billion over April 2000 to December 2017.

In February, South Korea’s Kia Motor announced plans to hire 3,000 staff for its new facility in the state of Andhra Pradesh. The automaker is setting up the plant at an investment of US$1.1 billion to support annual production of 300,000 units. Besides investment and job creation, Indian entry of foreign carmakers have led to sharing of critical technologies and expertise. The Indian facility will be a critical component of Nissan’s electric mobility drive. It sold over 160,000 electric vehicles globally, and along with partners, Renault and Mitsubishi, plans to roll out 17 new electric models by 2022. This is in line with India’s plan to attain 100 per cent electric mobility. India’s annual sales of electric and hybrid vehicles is expected to rise to 6 million by 2020 from 25,000 electric vehicles in 2016. To aid this growth, Government has aimed to develop India as a global manufacturing and research and development hub.

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