The firms plan to produce 80,000 cars in the first 12 months starting May, and 400,000 cars a year by 2014.
"This is the right product at the right time," said Kiminobu Tokuyama, chief executive of Nissan Motor India in a statement Monday.
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Global automakers have been racing to compete in China and India, the world's two fastest-growing major economies, as sales in most developed countries slumped due to the fallout from the global financial crisis.
India and its 1.2 billion-strong population is a huge draw because of the low number of car owners, estimated at just 13 per 1,000 Indians.
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The Micra seeks to challenge rivals like the Swift, from India's biggest passenger car maker Maruti, and Hyundai's i10 -- both small cars targeted for India's affluent middle-class.
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