Slump hits India's car industry

With all the focus on the US's car industry, I thought we would shift the attention a little to Inda's. Japan's third-larges carmaker, Nissan, and Renault have scaled back plans for joint projects after a sharp fall in car sales in the region.

Nissan's representive's said it still wanted to start car production together with Renault in the first half of 2010, as scheduled, at a plant in the southern city of Chennai.

But the factory, thus far, will start with just one daily shift, instead of two.

Other projects in India, including a joint venture between Nissan, Renault and India's Bajaj Auto to sell a $2,500 (£1,700) car from 2011, would go ahead as planned, Nissan said.

Demand for trucks in India has also dropped by more than 60% over the past year because of the credit crunch and a sharp drop in construction activity.