Renault-Nissan factory goes on a diet!

Renault-Nissan Automotive India has been surviving in the country due to its high percentage of exports and also due to the success of its crossovers - Renault Duster and Nissan Terrano. Now, because of dwindling sales and rising inventory, the company has decided to cut the production output by 50% i.e. from 40 cars per hour to 20 cars per hour, at its plant in Oragadam, Chennai.

The once successful compact crossover - Duster, is now facing the heat from the market because of newer and more modern competitors. Renault is finding it extremely difficult to uplift the Duster's sales and as of today, the company has excess inventory of 5,140 units at their factory. Giving the SUV some company at the factory are 4,100 units of the MPV sibling - Renault Lodgy, which failed to affect the sales of the Ertiga or the Innova. Dealerships across the country have 10,500 cars lying at their stockyards.

This downsizing move is expected to affect 3,000 jobs. ET Auto's source indicates that the company plans to disengage trainees, casual labour and apprentices, while the other workers will not be affected.

While Nissan has no future investment plans in India (as of now), Renault is banking heavily upon its upcoming budget hatchback - Kwid. Recently, the company roped in Bollywood actor, Ranbir Kapoor as brand ambassador as well as musician, A.R.Rahman for the ad jingle.