The India unit of Nissan Motor on Monday said it has started producing Micra hatchback, for which the domestic sales would commence from July and exports from September.
The first Micra compact car rolled out of the unit's factory near the southern city of Chennai on Monday, the company said in a statement.
The cars will be put on display across showrooms in India from May 25, when bookings will also be taken, it said.
"We are introducing a product that has been specifically designed keeping in mind the discerning consumer needs of India," Nissan Motor's Chief Operating Officer Toshiyuki Shiga said in the statement.
The cars will be exported to Europe, the Middle East and Africa.
The manufacturing unit, in which Nissan along with its alliance partner Renault is investing 45 billion rupees ($965.7 million) over seven years, has the capacity to produce 400,000 units annually and will be used by the partners as a global hub for exports.
Global car companies are vying for a share of India's compact car segment, which is about 70 percent of the total passenger car market. India's top carmaker Maruti Suzuki is the undisputed leader in the segment with brands such as the best-selling Alto, Swift and Ritz hatchbacks.
Earlier launches this year in the compact segment were General Motors' Beat, Ford's and Volkswagen's Polo hatchback, with Polo sedan expected in June and Toyota's Etios towards the end of the year.