Production stoppage at car plants a major concern: Panneerselvam

Chennai: Former Tamil Nadu Chief Minister O. Panneerselvam on Saturday said the stoppage of production at two car plants in the state is a major concern.

Panneerselvam, also the AIADMK Coordinator, was referring to the decision of Nissan Motor India to stop production of Datsun car models and Ford Motor Company's earlier announcement of closing down its plant near here.

The Franco-Japanese joint venture Renault Nissan Automotive India Private Ltd near Chennai manufactures cars for Renault India and Nissan Motor India.

Nissan Motor India recently announced its decision to stop production of the Datsun model and added that it would be selling spares and also provide the warranty support to the model owners.

This is not the first time that Nissan Motor India has stopped production of slow moving models. Earlier it had stopped rolling out the Micra, Evalia, Terrano models.

"The Sunny model is being made for export markets and not for domestic market," a worker at Renault Nissan Automotive India told IANS on the condition of anonymity.

According to the official, the plant rolls out Nissan's Magnite and Kicks models and Renault's Kwid, Triber and Kiger models.

The official said there is good demand for Magnite and the semiconductor shortage had slowed down its production.

It is not known whether there will be any positive rub off effect in terms of higher production at the plant here due to French company Renault's decision to suspend operations at its Moscow plant, the worker said.

Renault announced its decision to suspend operations at its Moscow plant after the Russian military operation in Ukraine.