Renault-Nissan Automotive India Pvt Ltd (RNAIPL) has announced that it will start a third shift at its Oragadam manufacturing plant near Chennai, Tamil Nadu. In a statement sent to IHS Automotive, the company said that the joint-venture plant would start operating a new night shift on one of its two production lines, effectively increasing overall annual capacity. "The decision will allow the plant to meet the accelerated domestic demand for the newly launched Renault Kwid and prepare for [the] introduction of Datsun's third model in the coming months. The plant will continue to deliver the export demand for Chennai-produced vehicles around the world like [the] Sunny and Micra," the company said in the statement.
Significance: The decision follows the massive popularity of the Kwid sport utility vehicle (SUV)-shaped hatchback, which has been warmly received by the market. SUVs are popular in India and are likely to emerge as the second most popular body style this year after hatchbacks, according to IHS Automotive estimates. Equipped with an 800cc engine, the Kwid is far from an SUV but has proved popular thanks to its aggressive price point and its body style. The vehicle will be offered with the choice of a 1.0-litre engine as well as a semi-automatic transmission; both additions are aimed at furthering the popularity of the vehicle. Apart from the domestic market, Renault will also supply the model to key markets in Africa and Latin America from the alliance plant, requiring the third shift.
