Nissan?s global restructuring could impact its India manufacturing operations: Reports

Share via: Earlier in April this year, Renault Group announced that it would acquire the remaining 51 per cent shareholding in the Renault-Nissan Automotive India Private Ltd (RNAIPL). …Read More Nissan Magnite is the only the only India made offering from the Japanese carmaker in the country. View Personalised Offers on Check Offers As Nissan Motor Co. embarks on a massive global cost-cutting and restructuring strategy, reports suggest the Japanese carmaker may shut down its manufacturing operations in India. While the company has not issued any official confirmation, multiple Japanese media outlets—including Yomiuri Shimbun and Kyodo News have reported that India is among the countries being considered for an exit. Earlier in April this year, Renault Group announced that it would acquire the remaining 51 per cent shareholding in the Renault-Nissan Automotive India Private Ltd (RNAIPL). The majority stake in the RNAIPL is currently held by Nissan Motor Corp. Purchasing this stake will allow Renault to take complete ownership of the Renault-Nissan Alliance’s manufacturing plant in India. Also Read : Nissan bets big on ‘RE: Nissan’: Job cuts, next-gen cars. India’s part in the play Nissan Motor India has further commented “As a policy we do not comment on speculatory reports. Nissan remains committed to its India operations, dealers, partners, and customers. Regarding the recent reports on the potential closure of certain plants, Nissan wants to clarify that this news is speculative and not based on any official information of the company.” It continued, “We have officially announced to consolidate the production of Nissan Frontier/Nissan Navara pickups, currently split between Mexico and Argentina, into a single production HUB in the region, centralized at the CIVAC plant in Morelos, Mexico. In March, we announced that Renault Group would own 100% of Renault Nissan Automotive India Private Ltd (RNAIPL), by acquiring the 51 per cent-shareholding currently held by Nissan. At this time, we will not be providing further comments on this matter. Our focus remains on our operations and the dedicated workforce that drives our success. We are committed to maintaining transparency with our stakeholders and will communicate any relevant updates as necessary.” India plant may be on the chopping blockAmong the seven global factories Nissan is reportedly planning to shut down, its Indian production facility is likely under review. Although not confirmed, this development comes at a time when the brand’s presence in India has been dwindling. The Renault-Nissan alliance plant in Oragadam, Tamil Nadu, currently manufactures the Magnite, the only India made offering from the Japanese carmaker in the country. India had once been a major focus market for Nissan, but with a limited product portfolio, falling sales, and increasing EV competition, its long-term commitment has appeared uncertain. If production in India is halted, it would effectively end Nissan’s domestic manufacturing footprint—unless a new strategy is introduced. It must be noted though that in a public statement, Nissan and its subsidiary Nissan Shatai Co. labelled the plant closure reports as “speculative” and “not announced by the company.” However, industry observers believe that even without an official word, the writing may be on the wall for Nissan’s Indian manufacturing unit. Nissan has earlier committed to launch three new products in the Indian market. The carmaker had revealed that it will launch a compact SUV and a B Segment seven seater MPV. The company noted that the new MPV is scheduled to launch in 2025 as a brand- new addition to the India product portfolio. Meanwhile, the 5-seater C-SUV (compact sports utility vehicle) will be launched in early 2026. Additionally, the carmaker also plans to bring in an India developed electric SUV. Also Read : Nissan bets big on Magnite facelift to kickstart its turnaround journey The bigger picture: Part of a $3.4 billion global overhaulNissan is aiming to reduce global costs by 500 billion Yen (approx. ₹28,000 crore) as part of its turnaround plan. The company also plans to eliminate 20,000 jobs worldwide. While specific closures have not been officially announced, other countries reportedly facing plant shutdowns include Argentina, South Africa, and two sites in Mexico. Furthermore, Nissan is also eyeing the closure of two major Japanese plants located in Oppama and Hiratsuka, both operated by its subsidiary, Nissan Shatai Co, the reports stated. These factories—responsible for roughly 30 per cent of Nissan’s domestic output—are situated in Kanagawa prefecture, near the automaker’s global headquarters. Get insights into Upcoming Cars In India, Electric Vehicles, Upcoming Bikes in India and cutting-edge technology transforming the automotive landscape. First Published Date: 18 May 2025, 08:30 AM IST
Source: hindustantimes.com