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Exports help Renault-Nissan buck trend, grow production

The Franco-Japanese alliance produced 182,000 cars last year and targets to increase that 210,000 units this year. Renault Nissan India will complete the current fiscal year with a 15% increase in factory output, on stable export demand for the Ni...

, ET Bureau|
Updated: Nov 04, 2019, 10.56 AM IST
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Orders from West Asia, sub-Saharan Africa and Europe have contributed to business at the plant in Chennai.
CHENNAI: Renault Nissan India will complete the current fiscal year with a 15% increase in factory output, on stable export demand for the Nissan Sunny and strong local draw for the compact 7-seater Renault Triber, according to a top executive.

The plant near Chennai has not announced any non-working days to slash production to align with slowing demand, contrary to the trend as other carmakers are trying to tone down production faced with dwindling demand. Several carmakers including market leader Maruti Suzuki and commercial vehicles manufacturer Ashok Leyland have cut production.

“Strong demand for Nissan Sunny and the Triber is pushing us towards finishing this year at over 15% production compared to last year. We have not announced any non-working days but for a few days for modifications at the plant ahead of launches. We are planning to have the plant running around Christmas, too, because demand has been tremendous,” the executive, who is aware of the production data told ET on condition of anonymity.

Orders from West Asia, sub-Saharan Africa and Europe have contributed to business at the unit, the executive added. The Franco-Japanese alliance produced 182,000 cars in the previous financial year and targets to increase that 210,000 units this year.

The factory has followed a practice of observing holidays over the last ten days of each calendar year for maintenance, but this year it is contemplating some working days in the last leg due to sustained demand.

The factory manufactures nine product lines across three brands — Renault, Nissan and Datsun. There has also been some speculation the carmaker will bring the Renault Kwid electric to India.

In July, Nissan said it was cutting production capacity by a tenth and over 12,500 jobs as well, to sustain profits in the medium-term.

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