New Delhi- Japanese auto major Nissan said Tuesday it has identified India as one of the five low-cost countries where it would manufacture its new-generation compact cars.

"Nissan will compete in the entry-car market with a dedicated new A platform that will be used for at least three models, including the next generation of Micra, and will be built in five leading competitive countries (LCCs)," the company said in a release.

It said production sites for the new compact cars would include the new plant in the southern Indian city of Chennai being constructed by the Renault-Nissan Alliance.

Nissan and Renault had announced earlier that they would invest 40 billion rupees (about 938 million dollars) in setting up the Chennai plant which would roll out 400,000 vehicles a year under both brand names.

Nissan also announced that it would produce an innovative new compact car from its Sunderland plant in Britain from 2010 when it would end production of the current version of the Micra at the plant. (dpa)