Nissan has reduced initial output at a car joint venture in India and delayed the start of production at a separate truck plant.
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A planned joint venture car factory with alliance partner Renault will still begin as scheduled in the first half of 2010 but at one shift rather than the initially planned two, Reuters reported. But the facility is still intended to grow to annual production capacity of 400,000 cars by 2015.
The move parallels Toyota’s recent decision to keep a new plant in Canada on single shift working indefinitely rather than adding a second shift next spring as originally planned.
Nissan is also delaying the start of light commercial truck production with Ashok Leyland by six months to as late as September 2011 in view of plunging truck sales in India, the report added.
Reuters noted that Ashok’s heavy truck sales fell 67% percent last month while market leader Tata Motors saw volume plunge 60% – both are reducing production to avoid a build-up of inventory with Tata shutting plants for up to six days.
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