Nissan is reportedly considering ending its vehicle production operations in India as part of a broader global cost-cutting and restructuring plan. The move is part of a strategy to reduce its global production footprint from 17 to 10 plants and cut its workforce by around 15%. If confirmed, this would mark a significant shift for the automaker’s presence in the Indian market.
Renault to Take Full Ownership of Indian Venture
In March, Nissan announced that French partner Renault would acquire Nissan’s 51% stake in their Indian joint venture, Renault Nissan Automotive India Private Ltd (RNAIPL). This transition would give Renault full control of the operation, raising further speculation that Nissan may gradually exit direct vehicle manufacturing in India.
Official Statement on India Operations
Nissan India has issued a clarification in response to the media reports, calling them speculative. The company stated that no official decision has been made about shutting down plants in India. However, it confirmed that the production of Nissan Frontier and Navara pickups would be consolidated into a single hub at its Civac plant in Mexico, indirectly impacting its global production strategy, including India.
Part of Larger Global Cuts
The possible India exit aligns with Nissan’s global turnaround plan led by new CEO Ivan Espinosa. The company is also reportedly evaluating closures of plants in South Africa, Argentina, and Japan, with two factories in Mexico under review. Nissan’s global sales have fallen significantly, with fiscal 2024 volumes down 42% compared to 2017.
No Final Decision Yet
While no final announcement has been made about India, the planned exit from several regions and the transfer of ownership to Renault suggest that Nissan is likely to scale back or cease production activities in India in the near future. The company has assured stakeholders that any updates will be communicated transparently.
