Nissan – Renault to increase its production at Chennai plant
India: Japan based Nissan and its French partner Renault has
planned to increase its production at Chennai plant based in India, which is
operating as a joint venture between the two multinationals. The company,
Renault Nissan Automotive India Private Ltd (RNAIPL) is likely to hike the
production capacity of the facility by introducing a third working shift.
The
Renault Nissan plant at Oragadam, Chennai, produce vehicles to meet the
domestic demand as well as to export in international markets. The production
enhancement was planned due to the rapid surge in the demand of Kwid and new
Datsun model, in the Indian as well as global market.
The
plant would introduce a new shift in night, in one of its two production lines,
which is going to increase its overall annual production capacity. The facility
which rolled out its one millionth vehicle in January, 2016, is currently
India’s second largest car exporter with approximately 600,000 units being
exported across 106 countries.
The
Alliance which started operating in March 2010 with an initial investment of
approximately USD750 million, have a current production capacity of 0.48
million units per year and have launched in total, 12 new models of Nissan,
Renault and Datsun till now. The
manufacturing facility and R&D department of the joint company, account for
around 12,000 direct jobs in Tamil Nadu and 40,000 in the Indian supply chain.
Colin
MacDonald, CEO and MD of RNAIPL said “This escalation in the production
capacity will enable the company to meet the Indian and overseas demand by
trimming down the waiting time in deliveries”.
According
to a recent report published by TechSci
Research, “India Tyre Market Forecast and Opportunities, 2020”, India
is the seventh largest vehicle producer in the world, with an average annual
production of more than 20 million vehicles in 2015. The country’s tire market
is predominantly a replacement driven market owing to large vehicle fleet.
Almost all major global automobile manufacturers operate in India. This creates
huge opportunity for tire manufacturers in the country.
As
per TechSci Research, this upsurge in the production of vehicle by
Nissan-Renault Alliance is anticipated to enhance the vehicle export from India
and also increase the demand of OEM tire in the country, which would eventually
impact the overall OEM tire market of India in coming years.