Business Standard

Renault-Nissan Chennai facility set to reach one million unit production soon

The Alliance has invested additional Rs 2,000 crore over and above its commitment of Rs 4400 crore in the state

Kwid

T E Narasimhan Chennai
The manufacturing facility of Franco-Japanese automobile alliance Renault-Nissan near Chennai is all set to see the production reaching one million units soon. According to sources, the Alliance have invested additional Rs 2,000 crore, which is over and above its commitment of Rs 4400 crore in the state.

Spokesperson of the company confirmed that by next moth the plant will achieve the milestone of one million production. The annual capacity of the plant is around 4,80,000 units and it currently produces six Nissan models and five Renault models.

This comes on the backdrop of growing exports and sales of Renault's Kwid, which also reached highest ever production. The per day per model production for Kwid is 367. The closest was Nissan's Micra which was also doing close to similar numbers.

 

Sources in the industry said, while Kwid contiunes to focus on the exports and its engine parts have started shipped out of India. They added that the capacity utilisation in the facility would be around 65-70 per cent.

The plant which already reported 22 per cent growth in production is expected to see further boost as both the automajors are gearing up for new variants and new models.

The upcoming launches include Datsun's third model and some variants of existing products and new Duster and Terrano.

The plant which lost production due to recent rain at Chennai is putting all its efforts and cooperation from workers helped the company catch up with the lost production, said the spokesperson.

The plant is expected to be back in normal routine by end of December. The plant is also planned to be shutdown from December 28, for annual maintenance. Nissan has posted a sales of 25,000 units from April to November, this year, while Renault's sales was 32,000 units during the period.

The company has also recently announced that its technicians have selected a new union, which is also recognised by the company for future discussions. The new union has duly applied for registration and according to the company, as a union, they can better represent workers interests including compensation and benefits.

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First Published: Dec 25 2015 | 12:42 AM IST

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