Japanese car-maker Nissan has decided to reduce the production of Datsun brand of cars in its facility near Chennai and introduce a new model as part of its market-restructuring strategy, the Tamil Nadu government said on Sunday.
Auto major Renault-Nissan has set up a joint manufacturing facility at Oragadam, about 45 km from Chennai, to produce various passenger vehicles with Nissan retailing Nissan and Datsun range of cars while Renault produces several vehicles, including Kiger and hatchback Kwid, among others.
In a statement on Sunday, Minister for Industries Thangam Thennarasu said, "Through a statement the Renault-Nissan alliance said that as part of their restructuring strategy, it has been decided to reduce the production of Datsun brand of cars and introduce a new model."
The comments by the Minister came in the backdrop of AIADMK co-ordinator O Panneerselvam who expressed concern on Saturday, over the reported move by Nissan Motor Company to halt the production of Datsun redi-GO models at its Chennai plant and urged Chief Minister M K Stalin to immediately intervene and ensure steps to sustain its operations.
Thennarasu said Renault-Nissan has informed the government that the company was producing vehicles at the unit despite the shortage of semiconductors and was able to meet the domestic and overseas demand.
"Renault-Nissan has firm plans for a successful operation of its unit in Tamil Nadu," Thennarasu said, adding Nissan recently marked the 50,000th production of its sports utility vehicle Magnite from the facility.
Noting that it was during DMK regime, 610 acre of land was allotted to set up the plant for Renault-Nissan at Oragadam, he said the company commenced commercial production on January 1, 2010.
At the production facility, Renault-Nissan produces various models of passenger cars besides shipping to 15 overseas markets.
On the remarks by Panneerselvam, Thennarasu said they were imaginary without any basic proof. "With the manufacturing facility continuing to function, it is against truth that there will be job loss," he said.
The Industries Minister said people would not forget that it was during AIADMK rule the manufacturing unit of the Nokia range of smartphones at Sriperumbudur was shut and KIA Motors, the South Korean auto-maker, also decided to shift its plan to set up a manufacturing unit in Andhra Pradesh rather than in Tamil Nadu.