NEW DELHI, Dec 15: Despite facing global challenges, Japanese automaker Nissan remains committed to revitalizing its operations in India and plans to expand its workforce in the country, as stated by a senior official.
Nissan recently added 600 positions at its Chennai facility to accommodate a third shift and does not expect the global cut of 9,000 jobs and a 20% reduction in production to affect its Indian operations, as long as it maintains a competitive edge, according to Nissan India Operations President Frank Torres in an interview with PTI.
“Nissan is making a significant investment in India, and our plans for the country remain firm despite global instability,” Torres remarked.
This comment came in response to questions about how global job and production cuts would influence Nissan’s operations in India.
“Contrary to popular belief, we are enhancing our workforce in India and expanding our production. We’ve recently added nearly 600 new employees at our Chennai manufacturing plant,” Torres emphasized.
“This addition is meant to support our production shifts as we prepare to launch two new models soon, irrespective of the global restructuring efforts. We don’t anticipate that these global changes will affect India because our plans remain intact. Our primary focus is on maintaining competitiveness, which is essential for Nissan,” he added.
In July, Nissan India revealed intentions to launch five new models within the next 30 months, aiming to turn around its operations in the rapidly growing Indian automotive market. The company targets to triple its domestic and export volumes to 100,000 units each annually by FY26.
In November, Nissan announced global job cuts of 9,000 and a 20% reduction in production as part of a turnaround strategy aimed at saving 400 billion yen (approximately USD 2.6 billion).
“There is no risk or impact on our plans for India; they will remain as they are. We are committed to continuing to be competitive in terms of product, cost, and partnerships with suppliers and dealers,” Torres affirmed.
The addition of a third shift at the Chennai plant was implemented a few weeks ago, to enhance full capacity utilization at the facility.
“This signifies the establishment of an entirely new shift. Looking ahead to 2026, we aim to operate at full capacity across both lines with three shifts. We are currently modifying one line to accommodate the new models,” Torres elaborated.
If the company meets its volume targets with the new models by the end of 2026, he stated, “This will boost plant utilization to over 80%, necessitating an increase in headcount compared to current levels.”
“Increasing our workforce is integral to our commitment, and we have assured the Tamil Nadu government of our intention to grow employment next year in line with new investments. We are receiving substantial support from the Tamil Nadu government,” he noted.
Additionally, he mentioned that the Renault-Nissan Alliance has pledged to create over 2,000 new jobs, extending beyond manufacturing into areas like R&D, as part of their USD 600 million investment plan announced in 2023.
Torres also remarked that the company is in the process of upgrading one production line to incorporate new technologies, including electric vehicles, in anticipation of launching an electric SUV.
“We aim to significantly increase our volumes in both domestic and export markets. Our goal is to triple our domestic and export volumes by FY26 compared to FY23. Our plans for new models remain unchanged,” Torres asserted.
Regarding sales growth, Torres indicated that in the current fiscal year 2024-25, Nissan India is aiming for a total sales growth of over 45%, projecting sales of more than 105,000 units compared to 72,666 units the previous year, largely owing to the upgraded compact SUV Magnite.
The company has expanded its export operations to over 65 countries, up from just 14, following the introduction of the left-hand drive version of the Magnite.
Nissan targets to export over 74,200 units in 2024-25, an increase from 42,597 units in the prior fiscal year.
In the domestic market, Nissan India anticipates a 4% sales growth to 31,155 units in 2024-25, compared to 30,065 in the previous fiscal year. (PTI)
