Renault has decided to hold back its plan to launch cars in India by 2010 due to the current global economic slowdown. It has temporarily halted its investments on assembly line at the Chennai plant.
In an alliance with its Japanese group company, Nissan, Renault had announced its plans for investing Rs 4500 Crore over a period of seven years. It has planned to produce four lakh cars annually. But now the hiring for the production activities is paused and the company is waiting for the favourable market condition to start the necessary work.
A senior official of Renault India said that the freezing of investments is only on the production side and the infrastructure development of the plant is continuing. Already Rs 900 Crore has been invested on the plant by Renault and Nissan together. He also said that the company has put a hold on the investment on production plant in Chennai and they will miss out their earlier plan of launching Renault cars in the Indian market by 2010.