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Renault to Freeze Assembly Plant in Chennai

By Motortrend India Staff   |   13 January,2009

The global meltdown has taken a great toll on the car market showing its aftermaths in the industry. Affected by the recessionary trend in the global automobile industry, the French car manufacturer Renault has planned to put a stop on its production unit at Chennai.

This project is a 50:50 joint venture between Renault and Nissan which was also earlier shared by Mahindra & Mahindra. But due to certain reasons Mahindra & Mahindra has pulled out its arms from the joint venture.

While Nissan will not stop the production of its entry-level vehicles from Chennai, Renault also has plans to manufacture the Megane and the Sandero from M&M’s Nashik plant. However, no final decision has been taken on the new launches from Nashik where still Renault manufactures the entry-level Logan in a joint venture with the M&M. Renault has also halted the Moroccan plant and is seeking government's help for the project.

Patrick Blain, Executive Vice-President for sales said that the freeze doesn’t mean that the project has been shelved. “We had a date” for the completion of the project, but “we no longer have a date”.

The company was planning to roll out cars from the Chennai plant by 2010 with an annual production of 4,00,000 units. The low cost car Micra is also expected to produce from the Chennai plant.

Cars manufactured at Chennai plant will be highly localised, targeting India’s mass market, and will be aggressively priced satisfying both domestic and export demands.

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