Renault-Nissan India is axing 3000 jobs at its Tamil Nadu Plant!

Around 3,000 employees will face the heat as Renault-Nissan Automotive India has begun a massive downsizing at its car factory off Oragadam.

The sales of cars are hit and the vehicles are piling up at the factory since last three months. The company has decided to cut production from 40 cars an hour at the plant down to 20, a 50% output cut in the country's largest car plant.

There are 5,140 Renault Dusters in the company’s inventory. Its latest Multi-Purpose Vehicle ‘Lodgy’ numbering 4,100 are also piled up at the factory.

Not only this, the national dealer network has 10,500 cars.

"The company has planned to disengage trainees, casual labour and apprentices, but the other workers will not be affected," an inside source with the factory told ET. The source said the beginnings are to be seen on the sales front.

The factory was set up in 2010 in the presence of the alliance's chairman and CEO Carlos Ghosn. It was built at an investment of Rs 4,500 crore and a capacity of 4 lakh cars at full ramp up.

The alliance has come out with popular brands like Micra, Duster and Terrano.

Renault India Private Ltd and Nissan Motor India give the manufacturing contracts to Renault Nissan Automotive India Private Ltd. Besides these entities, there is also in Chennai the Renault Nissan Technology and Business Centre India.

A top official with Renault said that it would not be appropriate to comment now.

A Nissan spokesperson said: "RenaultNissan alliance strongly believes in fair and ethical employment practices across the globe. Our employment conditions are in line with the prescribed labour laws of the country. We have not indulged in any wrongful dismissal of employees or trainees. As a responsible corporate, we regularly take trainees under various training schemes and impart necessary skills and knowledge. RNAIPL is under no obligation to offer full-time employment to these trainees. Full-time employment is offered only on availability of specific roles and performance of the individual trainee."

(Image: Reuters)