This popular car company leaving India? not Ratan Tata’s Tata Motors nor Anand Mahindra’s M&M but it is…, shutting down plant in…

Amid reports of lay-offs from big tech giant in the world, now this foreign company is going to close their plant in India, claims report.

According to Japanese media reports, Nissan Motor Co is considering shutting down its manufacturing operations in India. Nissan is going through a major global restructuring process like cost-cutting and operational realignment. Media reports suggest that the company is planning to close several plants worldwide as part of its new strategy.

The Renault-Nissan joint plant in Oragadam, Tamil Nadu manufactures Nissan’s only model in India, the Magnite. If this plant shuts down, Nissan’s presence in the Indian market will be almost negligible.

Renault Group had announced plans to acquire Nissan’s 51% stake in Renault-Nissan Automotive India Pvt Ltd (RNAIPL). It means Renault can take complete control of the plant and bring major shifts in operations.

Nissan’s Sales

It was once a famous brand in India but later on its sales  started declining in recent times. It didn’t bring new models and fewer options compared to competitors led to low share for the company in the market. Another reason was weak presence in the EV segment reduced customer trust.

Nissan had earlier announced plans to launch three new cars in India like SUV, a 7-seater MPV (set for a 2025 launch), and a locally-developed electric SUV. However, if the company shuts its factory in India, these plans will be unsure and put Nissan’s future in the Indian market will also be at stake.

Nissan is trying to reduce global costs by 500 billion yen (around Rs 28,000 crore). The plan includes laying off around 20,000 employees. Apart from India, plants in Argentina, South Africa, and two facilities in Mexico are also reportedly being closed down as part of broader restructuring strategy.

Nissan’s subsidiary, Nissan Shatai Co., is planning to shut down two major plants in Japan Oppama and Hiratsuka which accounts for nearly 30% of its domestic production. 

So far, neither Nissan nor Nissan Shatai has given an official statement regarding these developments. Both companies have called the media reports as speculative.