Nissan India has received an overwhelming response for the Magnite subcompact SUV from the Indian market. According to a report from PTI, the Japanese carmaker has decided to ramp up production at its Chennai facility to meet robust demand. Currently, the carmaker is capable of manufacturing just over 2700 units a month and it commands a waiting period of over 4 months, depending on the variant. The company aims to increase production capacity to around 3,500 units a month by July to bring down the waiting period. We did reach to Nissan India for a statement on this, however, we are yet to receive a reply from the company.
Rakesh Srivastava, Managing Director Nissan Motor India told PTI, "From February, the third shift has started. Now we are ramping up the production. We believe that going forward we should be able to take up this production, which is currently in the range of around 2,700 per month to close to around 3,500 per month in the next three months."
He also said, "This is the plan as of now, but this could be challenged by way of semiconductor shortage or shortages in terms of components or the Covid."
When asked about supply chain issues, Srivastava said, "The semiconductor situation has not improved and the challenge is only growing. The shortages are very strong in the market. Normalisation will happen only after July. Currently, the challenge is still there and it is only increasing."
He further said that preference for personal mobility driven by COVID-19, availability of liquidity in the market with lower interest rates and availability of credit has fuelled sales. He also confirmed that Nissan India has reportedly received 50,000 bookings for the Magnite SUV and over 10,000 units have been delivered to partners.
Nissan recorded a growth of 6 per cent during the financial year 2020-21. The company sold 4012 units in the Indian market last month. The strong sales momentum can be attributed to the Magnite SUV, as it has emerged as a flag-bearer when it comes to volumes. The company also increased the prices of its cars effective April 1, 2021 due to increased input costs.