Japan's third largest automaker Nissan Motor Co. said it would begin manufacturing its popular compact car model Micra in Chennai, a step seen as challenging Maruti Suzuki's dominance in the small car market. Presently, Micra is rolling out from Nissan's plant in Sunderland, UK. However, Nissan plans to begin production of a new compact fuel-efficient car from 2010 while Micra, which will be redesigned, will begin rolling out from Nissan's stable in Chennai.

Micra set a new standard for small cars when it was launched in early 2003 in UK and it's still one of the best around today. Micra is ideal for the driver that's just starting out and the older motorist, as it's easy to drive, with light, precise steering, a snappy gearchange and responsive controls. Push it hard and there's understandable body roll through corners; it's set up to be comfortable so it feels like a larger car giving an impressive ride, rather than for sporty performance. Town drivers will appreciate the tight turning circle, which makes parking in tight spaces and manoeuvring a breeze.

The interior is exceptionally roomy. The tall shape means there's loads of headroom, although taller adult passengers may find the back a little bit of a squeeze. Legroom in both the front and the back is good for the class and the cabin feels light and airy. Nissan has a impressive reputation for reliability. Micra feels well built and materials are of a good quality and should resist wear well. Makes regular appearances near the top of reliability surveys.

Earlier, Nissan said it would stop producing Micra at its plant in Sunderland, putting at least 1200 jobs at risk. However, the UK government managed to convince Nissan to manufacture a new car and granted the automaker tax incentives valued at 6.2 million ($12.2 million). According to Nissan design director Shiro Nakamura, the new Nissan Micra, which is already in the design stage, will adopt a more conventional and aggressive or sporty look that will appeal to the male buyers.

Micra will be sold in five leading competitive countries (LCCs) including India and Thailand. The Renault-Nissan alliance will invest Rs.4000 crore ($1 billion) on the Chennai plant where 400,000 vehicles would be manufactured annually under both the brand names.

Videos Of Nissan Micra (UK Version):