Nissan ramps up production at Chennai plant to meet demand amid backlog

Japanese carmaker Nissan has ramped up production at its Chennai plant as it looks to cater to the pent up demand for its models across domestic and international markets. The Oragadam-based plant, which is owned by Renault Nissan Automotive India Pvt, had to temporarily suspend operations from May 26-30 due to the worsening of the COVID-19 situation in Tamil Nadu.

The factory recommenced production on May 31. On June 4, the Madras High Court allowed the plant to continue with production while asking the automaker to address issues flagged by the state government on the safety of workmen, vis-à-vis COVID-19.

Rakesh Srivastava, Nissan Motor India Managing Director, told PTI that after a brief pause due to the challenges posed by the recent increase in COVID cases in India, the company has carefully resumed operations and initiated a second shift by ramping up production in a phased and gradual manner. “As a people-first organization, the company has taken a host of measures towards employee well-being, while continuing to observe all safety protocols mandated by the government authorities.”

Srivastava noted that the situation is still fluid, with production processes, manpower and supply chains taking time to attain normalcy. “But we are hopeful that the situation in the country will steadily improve so that we may operate at a full force and increase volumes of the all-new Magnite, Kicks, and Datsun portfolio to meet growing demands in India and our export markets.”

In regards to shortage of critical components, the executive said that the semiconductor situation has also improved drastically since it emerged at the start of the year. Srivastava said Nissan is working closely with their global teams, manufacturing plant and channel partners to address such supply chain and production issues. The carmaker has formed a cross-functional “Semi-conductor Task Force” that proactively works on anticipating global and local shortages whilst seeking alternative solutions. “We are confident that our experience has allowed us to manage the COVID-19 wave with more resilience, positivity and innovation to drive our business,” he said.

Also Read: ICMR Study: Third COVID-19 wave may not be as severe as second wave

The first joint Renault-Nissan Alliance plant for global markets, the Chennai facility has a production capacity of 400,000 units per annum. Opened in March 2010, the plant involves an investment of Rs 4,500 crore and employs 1,500 people.