Nissan has started manufacturing its Frontier pick-up truck in Argentina — the fifth country to make the vehicle, which is known as the Navara elsewhere in the world.

The vehicle is already produced in Mexico, Spain, China and Thailand.

The company has opted to produce the truck in Alliance partner Renault’s assembly plant in Santa Isabel, Cordoba, primarily to cater for growing demand in South America.

Moreover, sourcing components locally is a key element in Nissan’s Argentinian production plans.

Speaking to Automotive Logistics, a company spokesman said: “Localisation is key to competitiveness. As of today, the target is just higher than 30%, although we plan to reach 40% by working closely with our supplier network and increasing the ratio gradually, as opportunities arise.”

The $600 million investment at Cordoba will raise the plant’s capacity by 70,000 vehicles a year. Half of these will meet demand in Argentina; the rest will be exported to Brazil.

Nissan is also looking at the possibility of expanding sales to other regional markets.

Commenting on the Cordoba development, Ashwani Gupta (senior vice-president of Nissan’s light commercial vehicle business) said (www.nissan-global.com): “We already have a strong presence in Latin America, and this production line will ensure better delivery of our pick-ups, as demand for them around the world continues to grow.”

Argentina is the third-largest automotive market in Latin America and is expected to grow to sales of one million units annually in the medium term (up from about 900,000 units today).

Two months ago, Nissan also revealed details of plans to expand in what it termed the ‘new frontier’ markets of Africa, the Middle East and India.