An automobile major, Nissan, has made it to the news headlines yet again, for ramping up the production at its Chennai plant to address the mounting demand for its Magnite model.
As per company officials, Nissan Motor India, which observed a total sales growth of 6% at 18,886 units from 17,831 during 2019-20 to 2020-2021, is now looking forward to attaining a ‘three-digit growth’ by the end of this financial year.
Moreover, the production of Magnite at Nissan’s Chennai facility would reach about 3,500 units a month by July to cater to the robust demand in the country. However, the second-wave of COVID-19 and supply constraints, particularly that of semi-conductors, is currently posing a challenge for the desired production.
In line with the escalated production, the company has also announced employing 1,000 people for ramping up the production with an introduction of the third shift at the Chennai plant.
Commenting on the recent move, Rakesh Srivastava, MD at Nissan Motor India cited that the company is accentuating the production, thus including the third shift for this enhanced production from February this year.
He added that the firm believes that moving further, Nissan would be able to take up the Magnite production from current 2,700 per month to 3,500 per month in the next three months. Although this is the plan of now, it could be challenged by the way of semiconductor shortages during COVID-19.
Nevertheless, the company has reported to be working closely with its channel partners to meet its supply chain issues. Mr. Srivastava further mentioned that the semiconductor situation has not improved, and the challenge is only aggravating.
Rakesh anticipates the situation to normalize only after July, generating huge proceeds for the company and its escalating sales graph.