Nissan's global restructuring could impact its India manufacturing operations: Reports
Nissan Magnite is the only the only India made offering from the Japanese carmaker in the country. Check Offers
As Nissan Motor Co. embarks on a massive global cost-cutting and restructuring strategy, reports suggest the Japanese carmaker may shut down its manufacturing operations in India. While the company has not issued any official confirmation, multiple Japanese media outlets—including Yomiuri Shimbun and Kyodo News have reported that India is among the countries being considered for an exit.
Earlier in April this year, Renault Group announced that it would acquire the remaining 51 per cent shareholding in the Renault-Nissan Automotive India Private Ltd (RNAIPL). The majority stake in the RNAIPL is currently held by Nissan Motor Corp. Purchasing this stake will allow Renault to take complete ownership of the Renault-Nissan Alliance's manufacturing plant in India.
Also Read : Nissan bets big on 'RE: Nissan': Job cuts, next-gen cars. India's part in the play
Nissan Motor India has further commented 'As a policy we do not comment on speculatory reports. Nissan remains committed to its India operations, dealers, partners, and customers. Regarding the recent reports on the potential closure of certain plants, Nissan wants to clarify that this news is speculative and not based on any official information of the company."
It continued, "We have officially announced to consolidate the production of Nissan Frontier/Nissan Navara pickups, currently split between Mexico and Argentina, into a single production HUB in the region, centralized at the CIVAC plant in Morelos, Mexico. In March, we announced that Renault Group would own 100% of Renault Nissan Automotive India Private Ltd (RNAIPL), by acquiring the 51 per cent-shareholding currently held by Nissan. At this time, we will not be providing further comments on this matter. Our focus remains on our operations and the dedicated workforce that drives our success. We are committed to maintaining transparency with our stakeholders and will communicate any relevant updates as necessary." India plant may be on the chopping block
Among the seven global factories Nissan is reportedly planning to shut down, its Indian production facility is likely under review. Although not confirmed, this development comes at a time when the brand's presence in India has been dwindling. The Renault-Nissan alliance plant in Oragadam, Tamil Nadu, currently manufactures the Magnite, the only India made offering from the Japanese carmaker in the country.
India had once been a major focus market for Nissan, but with a limited product portfolio, falling sales, and increasing EV competition, its long-term commitment has appeared uncertain. If production in India is halted, it would effectively end Nissan's domestic manufacturing footprint—unless a new strategy is introduced.
It must be noted though that in a public statement, Nissan and its subsidiary Nissan Shatai Co. labelled the plant closure reports as 'speculative" and 'not announced by the company." However, industry observers believe that even without an official word, the writing may be on the wall for Nissan's Indian manufacturing unit.
Nissan has earlier committed to launch three new products in the Indian market. The carmaker had revealed that it will launch a compact SUV and a B Segment seven seater MPV. The company noted that the new MPV is scheduled to launch in 2025 as a brand- new addition to the India product portfolio. Meanwhile, the 5-seater C-SUV (compact sports utility vehicle) will be launched in early 2026. Additionally, the carmaker also plans to bring in an India developed electric SUV.
Also Read : Nissan bets big on Magnite facelift to kickstart its turnaround journey The bigger picture: Part of a $3.4 billion global overhaul
Nissan is aiming to reduce global costs by 500 billion Yen (approx. ₹ 28,000 crore) as part of its turnaround plan. The company also plans to eliminate 20,000 jobs worldwide. While specific closures have not been officially announced, other countries reportedly facing plant shutdowns include Argentina, South Africa, and two sites in Mexico.
Furthermore, Nissan is also eyeing the closure of two major Japanese plants located in Oppama and Hiratsuka, both operated by its subsidiary, Nissan Shatai Co, the reports stated. These factories—responsible for roughly 30 per cent of Nissan's domestic output—are situated in Kanagawa prefecture, near the automaker's global headquarters.
Get insights into Upcoming Cars In India, Electric Vehicles, Upcoming Bikes in India and cutting-edge technology transforming the automotive landscape.
First Published Date: 18 May 2025, 08:30 AM IST
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
India.com
7 hours ago
- India.com
Govt Imposes Anti-Dumping Duties On Vitamin A, Rubber Chemical Imports From China, Japan, EU
New Delhi: The Union government has imposed anti-dumping duties on imports of Vitamin-A Palmitate and insoluble sulphur -- a crucial rubber additive -- on China, Japan, Switzerland, and the European Union (EU). The Ministry of Finance, in a notification on June 6, issued the anti-dumping duties for a period of five years unless it is cancelled or revised. It aims to protect domestic manufacturers from low-priced imports that affect the local industry. The move follows an investigation by the Directorate General of Trade Remedies (DGTR) which revealed that the price of Vitamin-A Palmitate imported by these countries was lower than the normal value. The DGTR also noted 'material injury' to domestic producers of Vitamin-A Palmitate due to large-scale dumping from China, the EU, and Switzerland. The compound, commonly used in small quantities, remains heavily import-dependent in India. While Vitamin-A Palmitate is used in pharmaceuticals, food, and cosmetics, insoluble sulphur plays a key role in the rubber industry, majorly in tyre manufacturing. The anti-dumping duties, effective immediately must be paid in Indian rupees based on the exchange rate. It is expected to prevent unfair trade practices and protect local industries. According to the notification, the duties for Vitamin-A Palmitate, range from $0.87 to $20.87 per kg; The highest duty has been imposed on Chinese exporters other than Shangyu NHU BioChem, which will face a lower rate of $14.95/kg. Swiss producer DSM Nutritional Products will attract a duty of $0.87/kg, while other Swiss exporters will face $8.2/kg. A flat rate of $11.09/kg will apply to imports from the EU, the notification stated. Further, depending on the exporter, the duties on insoluble sulphur will range from $259 to $358 per metric tonne. Chinese imports will face a flat duty of $307/MT. Among Japanese companies, Shikoku Chemicals will be charged $259/MT, while all other Japanese exporters will face the maximum rate of $358/MT, the notification said.
Time of India
10 hours ago
- Time of India
Yageo says it will protect technology if Shibaura purchase succeeds
By Wen-Yee Lee and Makiko Yamazaki TAIPEI/TOKYO: Taiwan's Yageo said it will implement strict controls to prevent technology from leaking if it succeeds in acquiring Japan's Shibaura Electronics , responding to concerns in Japan over what the deal could mean for national security. Chairman Pierre Chen told reporters in Taipei on Saturday that the company will meet with Shibaura in mid-June in Tokyo to discuss potential cooperation. Yageo, the world's largest maker of chip resistors, launched an unsolicited tender offer for Shibaura in February, seeking full control of the Japanese firm, which specialises in thermistor technology . Yageo offered to buy Shibaura at 4,300 yen per share, valuing the company at more than 65 billion yen ($450 million). Spurning Yageo's overture, Shibaura tapped Japanese components supplier Minebea Mitsumi as a white knight. Minebea and Yageo entered a bidding war, with the latter now offering 6,200 yen. The stock closed at 6,100 yen on Friday. "Our strategy is to inject resources and strengthen R&D for advanced technologies. We're also preparing to make larger investments to expand their facilities in Japan," Chen said. Asked about Japan's national security concerns, he said: "We will implement strict controls to ensure technology does not leak." Unsolicited takeovers were once rare in Japan, where companies often mounted elaborate defences. The Japanese industry ministry's M&A guidelines in 2023 cracked down on what it considered excessive defence tactics, de-stigmatising unsolicited buyouts and leading some of such deals to succeed. Chen said that negotiations with Japan's Ministry of Economy, Trade and Industry had been going smoothly. He said that if Yageo acquires Shibaura, the deal would address a gap in its portfolio of thermistors, making Yageo's offerings more complete for global customers and helping Shibaura expand its access to markets outside of Japan. Yageo said it aims to ease the burden of managing smaller component suppliers for its major clients, including Apple and Nvidia, by offering more comprehensive product portfolios and solutions. Yageo is also the world's number three manufacturers of multilayer ceramic capacitors and provides key components used in Apple's iPhones, Nvidia's AI servers, and Tesla's electric vehicles.
Hans India
13 hours ago
- Hans India
South Korean court orders Mitsubishi to compensate 107-year-old
Seoul: South Korean appeals court has ruled in favour of a 107-year-old South Korean victim of Japan's wartime forced labour in a damages suit filed against Japan's Mitsubishi Heavy Industries Ltd., sources said on Saturday. The civil appeals division of the Seoul Central District Court overturned a lower court's ruling handed down in 2022 that rejected Kim Han-soo's suit seeking compensation from the Japanese company on the grounds that the case's statute of limitations had expired. In May, the appeals court ordered Mitsubishi Heavy Industries to pay 100 million won ($73,400) in compensation to Kim in a ruling that came about 80 years after he was conscripted into Japan's wartime forced labour. Despite the court's ruling, Mitsubishi Heavy Industries is not likely to pay the compensation. Kim said he was forced to work in a shipyard run by the Japanese firm in 1944 during Japan's 1910-45 colonial rule of the Korean Peninsula. In previous damages suits related to forced labor, courts largely ruled that the statute of limitations expired in May 2015, three years after the Supreme Court acknowledged the legal right to claim damages by Korean victims of Japan's forced labour for the first time, Yonhap news agency reported. South Korean civil law stipulates that the legal right to claim damages expires three years after the victim discovers the harm and identifies the offender. But the appeals court ruled in favour of Kim, judging that the statute of limitations related to forced labour-related damages suits should be calculated based on a separate 2018 ruling by the Supreme Court, effectively pushing back the expiration of the statute of limitation. Kim's damages suit against Mitsubishi was filed in 2019. In 2018, the Supreme Court ordered Japanese firms to compensate Korean victims of Tokyo's forced labour in a landmark ruling. But Japan has claimed all such reparation issues were settled under a 1965 treaty to normalise bilateral relations.
