Nissan India announces EUR 700 million investment, plans to strengthen presence in Indian market with new models and EVs
Nissan India Manufacturing Plant: Recent Developments and Company’s Commitment to the Indian Market
In recent news, reports surfaced suggesting that Japanese automobile manufacturer Nissan is planning to shut down its manufacturing plant in India. Specifically, the concern was regarding the Oragadam facility near Chennai, Tamil Nadu. However, Nissan has issued an official statement clarifying its position and reaffirming its commitment to the Indian market.
The Oragadam plant, established in 2008, has been a significant hub for Nissan’s operations in India. Over the years, it has produced millions of vehicles, contributing substantially to the company’s presence in the Indian automotive sector. Despite the challenges faced in the competitive Indian market, Nissan’s commitment to the Oragadam facility and its operations in India remains steadfast.
Nissan India: Company Overview
Nissan Motor Co., Ltd., established in 1933, is a renowned Japanese multinational automobile manufacturer. In India, Nissan commenced operations in 2005 through a joint venture with French automaker Renault, known as Renault Nissan Automotive India Pvt. Ltd. (RNAIPL). The Oragadam plant, with an annual production capacity of 400,000 units, has been a significant hub for manufacturing vehicles for both the domestic and export markets.
Reports of Plant Closure
In May 2025, media outlets reported that Nissan was considering the closure of several manufacturing plants globally, including the one in India. These reports were part of a broader restructuring plan aimed at reducing production capacity and workforce as part of Nissan’s global turnaround strategy. The company had previously announced plans to reduce its global workforce by 15% and decrease the number of production plants from 17 to 10.
Official Statement from Nissan
Following the circulation of these reports, Nissan India issued a statement to clarify its position. The company emphasized that it has no plans to exit the Indian market. Nissan remains committed to its operations in India, focusing on delivering vehicles tailored to local consumer needs and ensuring top-notch sales and service. The company also highlighted that India will continue to serve as a hub for its research and development, digital, and other knowledge services.
Transition of Manufacturing Operations
As part of a strategic realignment, Nissan has agreed to sell its 51% stake in the Oragadam manufacturing facility to its alliance partner, Renault. This transaction, pending regulatory approvals, is expected to be completed by the end of the first half of 2025. Despite this change in ownership, Nissan will continue to utilize the facility for manufacturing its models, including the Magnite, for both the Indian and export markets.
Nissan’s decision to transition from a fixed cost model to a variable cost model by paying per unit produced at the Oragadam plant is part of its broader strategy to improve efficiency and manage costs effectively.
Future Plans and Investments
Nissan has outlined its plans for the Indian market, which include:
- New Model Launches: The company aims to launch six new models, including SUVs and electric vehicles, to cater to the evolving preferences of Indian consumers.
- Investment Commitment: Nissan has committed €700 million (approximately ₹6,300 crore) to the Indian market, with over 80% of this investment already deployed to develop new products, expand its retail network, and strengthen the brand.
- Sales Targets: The company aims to triple its domestic sales to 100,000 units and double its total sales, including exports, to 200,000 units by 2026.
Conclusion
Despite the global restructuring initiatives, Nissan’s commitment to the Indian market remains steadfast. The transition in the ownership structure of the Oragadam plant does not signify an exit but rather a strategic move to enhance operational efficiency. With significant investments and a robust product pipeline, Nissan is poised to strengthen its presence in India and continue contributing to the country’s automotive landscape.
