Nissan Motor Company has started looking at India as a cost effective location to source spare parts for its global operations. The company is planning to procure spare parts for its non-compact cars from all locations in India including its Orangadam plant near Chennai, which will be its focal point.

The Chennai plant will take care of special packaging and other value-engineering aspects. Nissan India has been receiving regular supply-related enquiries from other Nissan subsidiaries in Europe. An official from Nissan India said that the Indian subcontinent has an edge in both the quality of supplies and spare parts and the cost.

Nissan has identified three countries – India, China and Thailand, to set up production bases, and is yet to finalise two more locations for the purpose.