Renault Acquires Nissan’s 51% Stake in Indian Manufacturing Unit
On Monday, Renault Group announced that it would acquire the remaining 51% stake in Renault Nissan Automotive India Private Ltd (RNAIPL), which was previously held by Nissan Motor Corp.
- This move strengthens Renault’s position in India’s growing automotive market.
- Nissan will still maintain a strong presence in India, focusing on increasing market coverage and continuing to produce models like the New Nissan Magnite.
- The plant will play a vital role in Nissan’s expansion plans for the future.
Renault Group’s Strategic Vision for India
According to Luca de Meo, CEO of Renault Group, this acquisition reflects the company’s ongoing partnership with Nissan within the Alliance. Renault has a vested interest in supporting Nissan’s turnaround efforts.
- Renault’s approach has been pragmatic, focusing on the most effective ways to support Nissan’s recovery while also creating value for Renault.
- The deal is seen as beneficial for both parties and demonstrates the agile nature of the new Alliance.
- India remains a critical market, and Renault plans to build an efficient industrial ecosystem in the region.
Nissan’s Commitment to India
Ivan Espinosa, President and CEO of Nissan, highlighted that Nissan’s commitment to India remains unchanged. The company plans to enhance efficiencies and create a more agile business model in response to market conditions.
- Nissan aims to focus on local consumer needs, while also ensuring quality sales and service.
- The Indian market will continue to be a hub for research and development, as well as digital and other services.
- The company’s plans to introduce new SUVs for India and continue its vehicle exports remain intact, aligned with its “One Car, One World” strategy.
Renault’s Growth Plans for India
Renault Group is accelerating its development plans for India as part of its “2027 International Game Plan”. The RNAIPL plant in Chennai is a critical asset in this strategy.
- The plant boasts a production capacity of over 400k units and is situated in a highly competitive supplier ecosystem.
- It currently uses the CMF-A and CMF-A+ platforms, and the launch of the CMF-B platform next year will bring four new models.
- After this transaction, RNAIPL will be fully consolidated in Renault Group’s financial statements.
