Renault to acquire Nissan’s 51% stake in Indian JV

The Indian car market witnessed a major development when the French Renault Group announced its decision to acquire the Japanese carmaker Nissan’s 51% stake in their Indian joint venture. With this action, Renault will take full operational control over Renault Nissan Automotive India Private Ltd (RNAIPL), while Nissan will retain its 49% stake. This agreement gives them control over the joint venture and the manufacturing plant in Chennai.

Nissan will continue to use RNAIPL for vehicle sourcing in India and exports, including the new Nissan Magnite, in the coming year.

The agreement also includes a continued collaboration between the two brands on all the existing projects and outlines their future business relationship in India.

As part of the agreement, starting in 2026, Renault Group, through its electric vehicle unit Ampere, will develop and produce a new A-segment vehicle that will be based on the Twingo for Nissan. And the design of this model will be handled by Nissan.

Luca de Meo, CEO of Renault Group, says, “As a long-time partner of Nissan, within the Alliance and as its main shareholder, Renault Group has a strong interest in seeing Nissan improve its performance quickly and successfully. Realism and a business-oriented mindset were majorly discussed to better recognize effective ways of supporting their recovery plan, while also developing value-creating business opportunities for Renault Group. This Framework Agreement is proof of the agile and competent mindset of the new-fangled Alliance and will prove beneficial for both parties. It shall also promote the attractiveness of our products with Twingo and gain success for our business in international markets. India is a key automotive market and will remain a hub for our research and development, digital and other knowledge services. Renault Group will put in place an efficient industrial footprint and ecosystem”.

“We shall remain committed to the Indian market, deliver vehicles that are tailor-made for the local consumers, along with ensuring top-notch sales and services to the existing and future clientele. Our plans for new SUVs in the Indian market will remain intact, and we will continue to grow our exports under the “One Car, One World” business strategy", said Ivan Espinosa, president and CEO of Nissan.

 This project deal represents a key opportunity for Renault to expand its international business and is a part of Nissan’s broader turnaround strategy.

 Key pointers

·   400,000 units of annual capacity of the Chennai plant will be operated by Renault Nissan Automotive India Pvt Ltd (RNAIPL).

·   Nissan, which had produced 99,000 units at the Chennai plant in FY24 — 28,000 for sales in India and 71,000 for exports — aims to rise to 100,000 units for both by 2026.

·   Despite Nissan’s exit from RNAIPL, both automakers will continue their partnership at Renault Nissan Technology and Business Centre India (RNTBCI), with 51- 49 per cent share stake.  

·   Nissan is implementing a global turnaround strategy since November, with a cut of 9,000 jobs and reduced production capacity by 20 %. However, 4,958 permanent employees at the Chennai unit and 1,600 contract workers will remain untouched.

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