According to a local report, French automaker Renault and its Japanese alliance partner Nissan have stopped their planned 50 billion rupees ($756 million) investment in India.
The Indian hiatus, says the Hindustan Times in its report, comes after the Tamil Nadu state government has failed to make payments owed to the automakers. The alliance has a jointly owned factory in Chennai in Tamil Nadu, and asked the central state authorities to assist them in recuperating 19 billion rupees in investment promotion subsidies and 27 billion rupees of tax refunds – said the newspaper, citing as a source a letter sent by Renault Nissan Automotive India to Amitabh Kant, the secretary of the Department of Industrial Policy and Promotion in New Delhi. India has been going through a deep recession before the government of Prime Minister Narendra Modi came to power and finally brought much needed central peace by delivering numerous reforms.
Already earlier this month the two carmakers, which have been in an alliance since 1999, announced they would move to lower their workforce count in the country by several hundred workers and also lower the manufacturing output at the Chennai factory. The facility produces Renault, Nissan and Datsun brand models such as the Duster SUV and Lodgy minivan (Renault) next to the Nissan Micra hatchback and Terrano sport utility vehicle.
Via Automotive News Europe