Nissan Motor and Bajaj Auto’s small car project in India remains on track, the Japanese partner has said.

“We are checking the visibility of the market. Our first priority is to maintain cash flow,” Shouhei Kimura told Reuters when asked if the project would be delayed.

Nissan on Thursday axed 1,200 jobs and two shifts at its UK plant, though one shift will be restored later this year. It also has an OEM deal with Maruti Suzuki to supply a rebadged Alto for sale primarily in Europe and is setting up another car plant in India with alliance partner Renault.

Nissan plans to begin initial production at the Bajaj project in the first half of 2010, Kimura was quoted as saying.