Nissan expands production in India with shifts and investment plans

By Staff Report December 16, 2024 4:29 pm IST

The company has increased headcount at its Chennai plant by 600 and added a third shift, aiming to put its Chennai-based manufacturing plant at full capacity with both lines at three shifts by 2026.

Japanese auto major Nissan’s plans to turn around its Indian operations remain intact, and it is looking to increase headcount in the country despite the turbulence it is facing globally, according to a senior company official.

Frank Torres, Nissan India Operations President, said, “The company, which has increased headcount at its Chennai plant by 600 to add a third shift, does not foresee steps to cut 9,000 jobs and 20 percent production globally having an impact on India as long as it remains competitive in the market. Nissan is betting big on India, and the plans (for India) remain intact despite this global turbulence.”

Nissan is strengthening its production, and this initiative was supported with the addition of almost 600 new employments in its manufacturing plant in Chennai. Nissan has grown one full new shift. The company plans to put its Chennai-based manufacturing plant at full capacity with both lines at three shifts by 2026.

“This move is to help the production shifts. We are expanding production very soon with two new models…this is despite the global action, which involves restructuring. We don’t forecast that the impact will be in India because our plans remain untouched. Of course, the key point for us is to keep being competitive. Because, in the end, this is what is considered most important inside Nissan.” Earlier in July this year, Nissan India announced that it is looking to introduce five models over the next 30 months as it looks to turn around its operations in the fast-growing Indian car market. The company has set a target of tripling its domestic and export volumes to 100,000 each per annum by the end of FY26.

The third shift at the Chennai plant started some weeks ago, as the company targets full capacity utilisation of the manufacturing plant. Nissan is now refurbishing one to adapt to new technology, such as EVs, ahead of the planned launch of an electric SUV.

“Increasing headcount is part of our commitment. We have committed to the Tamil Nadu government to grow our headcount next year based on the new investments, and we are well supported by the Tamil Nadu government.” Moreover, he said, the Renault-Nissan alliance had committed to more than 2,000 employment creations not just in manufacturing but also in other areas like R&D as part of their $600 million investment plan announced in 2023.