Coronavirus Pandemic: Renault-Nissan Alliance To Suspend Operations At Chennai Plant

The Coronavirus pandemic has hit each and every facet of the economy hard! With almost all major two-wheeler and four-wheeler company suspending its manufacturing operations in India, Renault and Nissan have announced the same as well. The Renault-Nissan Alliance plant at Oragadam, Chennai will temporarily stop operations from March 24, 2020 until further government notice. The Coronavirus outbreak has hit the Indian auto industry hard and reports suggest with each day of shutdown, the sector stands to lose revenue of up to ₹ 13,000 – 15,000 crore every day.

(Renault and Nissan have joint plant operations at Oragadam, Chennai)

Renault Nissan Automotive India Pvt Ltd (RNAIPL)’s parent company, Groupe Renault also announced the stopping of manufacturing in France at 12 sites due to the Covid-19 pandemic that has been spreading swiftly across the global.

The Indian auto industry contributes to around 7.5 per cent of India’s overall GDP, accounting for 49 per cent of the manufacturing sector. The Society of Indian Automobile Manufacturers (SIAM) along with Automotive Components Manufacturers’ Association of India (ACMA) has issued an advisory to auto manufacturers to halt their plant operations temporarily.

Rajan Wadhera, President, SIAM said, “With a view to the deteriorating situation arising out of COVID-19, SIAM and ACMA have both requested their Members in OEMs and Auto Component Industry to consider plant shut down for a limited period to overcome the critical period so that workers are not exposed to the virus.

Other manufacturers such as Maruti Suzuki, Toyota, Honda, Kia Motors, Hyundai and Tata have also announced temporary suspension at their respective manufacturing facilities.

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