Renault-Nissan export backlog is 34,964 units

Franco-Japanese joint venture car maker Renault Nissan Automotive India Ltd that announced closure of its plant near here for five days to prevent COVID-19 spread has to roll out 34,964 units to meet export obligations between May-October 2021.

In addition, the company has to roll out 45,000 Nissan Magnite and Renault Kiger cars to be delivered for Indian buyers.

The company’s plant near here rolls out different brands of Renault and Nissan vehicles for domestic and overseas markets.

On Tuesday, it announced plant closure from May 26-30 and restart on May 31 after the worker’s union had announced indefinite boycott of work from May 26 onwards till COVID-19 safety precautions are implemented to their satisfaction.

The union - Renault Nissan India Thozhilalar Sangam (RNITS) had complained to the Madras High Court that Renault Nissan Automotive is seeking to take advantage of the exemption granted by the Tamil Nadu government without even bringing down the level of production to only so much as may be necessary to meet the export commitments.

As per Renault Nissan Automotive, it has to roll out 34,964 cars (Renault cars 10,982, Nissan cars 23,982) in May-October 2021 for export markets. It also told the Court any delay in fulfilling the export orders which is required to be sent, among others to fleet based markets in the Gulf, will not only entail penalty and in addition, losing the business. Its exports revenue stood at about Rs 5,500 cr in 2019-20 and about Rs 3,159 cr in 2020-21.