Renault tries to survive Indian market slowdown

French automaker Renault S.A. temporarily put on hold plans to launch cars in India by 2010, following the company’s decision to hold back investments on an assembly plant at Oragadam, near Chennai, Tamil Nadu. Work on the plant started in June 2008 and the first line should have been ready in the first half of 2010. The company, which announced last year that it will invest Rs45 billion (US$919.35 million) in the yearly production of 400,000 cars with Japanese carmaker Nissan Motor Co., has now stopped hiring for production activities while it awaits market conditions to improve. “It is possible that we abandon the project completely,” said Renault’s Chief Financial Officer, Thierry Moulonguet. However, Renault will continue its presence in India by producing a new Logan Sedan model by 2010 with its joint venture partner, Indian carmaker Mahindra & Mahindra. (February 3/15, 2009)