Renault-Nissan to increase production at Chennai plant

Franco-Japanese auto alliance Renault-Nissan today said it would hike output at its Chennai plant with the implementation of third production shift to meet demand for current line-up and to prepare for upcoming models.
"From this week, the plant will operate a new night shift on one of its two production lines, which will effectively increase overall annual capacity," Renault Nissan Automotive India Private Ltd (RNAIPL) said in a statement.
The plant has a capacity to produce 4.8 lakh units per year at full ramp up. It will continue to deliver the export demand for Chennai-produced vehicles around the world like Sunny and Micra.

The decision will allow the plant to meet accelerated domestic demand for the newly-launched Renault Kwid and prepare for introduction of Datsun's third model in the coming months, it added.
Commenting on the development, RNAIPL Chief Executive Officer and Managing Director Colin MacDonald said: "Increasing our production capability means we will be able to better meet the demands of our Indian and overseas customers by limiting waiting times on deliveries."
On an average, the alliance launched two new models each year since the plant opened, he said.

The plant, which is the largest alliance manufacturing facility in the world, started operation in March 2010 with an initial investment of Rs 4,500 crore, which has now risen to Rs 6,100 crore.

Till date a total of 12 all-new Nissan, Renault and Datsun models have been introduced to its two production lines catering for both domestic and international markets.
The facility crossed the one million unit production milestone in January this year with over 6 lakh units exported to 106 countries.