Renault is planning to pull out of the joint factory project in Chennai. The company is facing tremendous pressure owing to the global slowdown and intends to cut down its production around the globe. After shutting down its plants across the globe, it now intends to cut down its production in India as well.
"Renault may pull out of a joint factory project in Chennai, India, with Japanese affiliate Nissan. It's possible that we abandon the project completely. It depends on market conditions," chief financial officer Thierry Moulonguet said. However, Renault India spokes person denied any such intentions of the company.
Renault SA had entered into a three-way joint venture with Nissan Motor and Mahindra and Mahindra to set up Rs 4500 crore manufacturing plant in Chennai. M&M pulled out of the joint venture last year and the current joint venture is running as a 50-50 JV between Renault and Nissan.
Renault SA is also planning to put on hold any further launches of its new cars in India in 2010. "Renault's investment on production plant in Chennai is being temporarily frozen and what we will miss out is Renault cars coming out in the Indian market by 2010," a senior Renault India official said.