Nissan begins ramping-up production at Chennai plant to clear order backlog

Nissan has started a gradual ramp-up of production at its Chennai plant as it hopes to cater to the pent up demand for its models across domestic and international markets, according to a top company official. The company has initiated a second shift at its factory in a phased manner.

Nissan had to temporarily suspend operations at its plant from May 26 to 30 due to the worsening of the Covid-19 situation in Tamil Nadu. The plant was closed after the company had a prolonged tussle with labour unions who demanded work to be stopped at the company's factory so that their lives are not risked.

The factory resumed production on May 31 and on June 4, the Madras High Court allowed the plant to continue with production while also asking the automaker to address concerns flagged by the labours as well as the state government on Covid safety protocols. "After a brief pause due to the challenges posed by the recent increase in Covid-19 cases in India, we have carefully resumed operations and initiated a second shift," Nissan Motor India Managing Director Rakesh Srivastava told PTI.

Srivastava added that the company has taken a host of measures towards safety and well-being of its employees while also continuing to observe all safety protocols mandated by the government authorities. However, for normalcy to come back in production procedure will take some time as the situation is still fluid vis-à-vis manpower and supply chains.

The semiconductor situation has improved drastically as compared to the start of the year and Nissan is working closely with its global teams, manufacturing plant and channel partners to address all the supply chain and production issues. Nissan's cross-functional ‘Semi-conductor Task Force’ works on anticipating global and local component shortages whilst seeking alternative solutions. "We are confident that our experience has allowed us to manage the Covid-19 wave with more resilience, positivity and innovation to drive our business," Srivastava said.

(with inputs from PTI)

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