Renault Group to Acquire Nissan's 51 Pc Stake in India JV Unit
French automaker Renault Group announced on Monday its intention to acquire the remaining 51% stake in Renault Nissan Automotive India Private Ltd (RNAIPL) from Nissan Motor Corp, thereby becoming the sole owner of the company.
Despite this acquisition, Nissan will continue to maintain a significant presence in India, focusing on expanding its market coverage. According to a company statement, RNAIPL will continue to manufacture Nissan models, including the new Nissan Magnite, and will play a vital role in the company's future growth strategies.
The Chennai plant, which has a production capacity of over 400,000 units, will bolster Renault Group's presence in India as part of its '2027 International Game Plan.' Renault plans to introduce the CMF-B platform at the Chennai facility in 2026, starting with four new models.
Nissan will also be released from its obligation to invest in Ampere, effectively terminating the investment agreement made in July 2023.
Renault Group CEO Luca de Meo emphasized the importance of Nissan's performance, stating that as a long-time partner within the Alliance and its main shareholder, Renault Group is keen to see Nissan improve its performance swiftly. He noted that a pragmatic and business-focused approach guided their discussions to find the best ways to support Nissan's recovery plan while creating value for Renault Group.
"This framework agreement, which benefits both parties, demonstrates the agile and efficient mindset of the new Alliance," de Meo remarked. He also highlighted the appeal of Renault's products, such as the Twingo, and the company's ambition to expand in international markets. He reiterated that India is a key automotive market, and Renault Group will establish an effective industrial footprint and ecosystem there.
Even after relinquishing its stake in RNAIPL, Nissan will continue to have a strong presence in India, focusing on market expansion. The Chennai-based RNAIPL facility will keep producing Nissan models, including the new Magnite, which is essential for the company’s growth plans.
Nissan's President and CEO, Ivan Espinosa, stated, "We remain committed to the Indian market, delivering vehicles tailored to local consumer preferences while ensuring excellent sales and service for our current and future customers. India will continue to serve as a hub for our research and development, as well as digital and other knowledge services. Our plans for new SUVs in the Indian market remain unchanged, and we will continue exporting vehicles to other markets under our 'One Car, One World' business strategy for India."
