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Renault To Take Full Control Over Nissan India - New Strategic Projects

By:Lakshya Saroha
Updated On: April 1, 2025 13:41 IST
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Renault To Take Full Control Over Nissan India - New Strategic Projects

KEY HIGHLIGHTS

  • Renault to take full ownership of RNAIPL.
  • After the full ownership, RNAIPL will invest Rs 1,850 Cr.
  • Nissan will launch a C-segment SUV and MPV based on Triber.

In Renault Nissan Automotive Private Ltd (RNAIPL), major changes are about to happen. Renault is going to buy Nissan's 51% stake and take full ownership. As of now, the shareholding structure is 51:49, but looking at the current state of the Japanese manufacturer, things are rapidly changing in order to breathe new life into the legendary manufacturer. However, this decision will not disturb the production of Nissan vehicles, including the Magnite, nor affect its service stations. More details on the future of this group are below. In the meantime, make sure to join the 91Wheels Whatsapp Channel to never miss out on automotive updates.

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Renault Nissan Automotive Private Ltd

This decision is not going to affect the production of Nissan cars, as RNAIPL will continue to do so for Nissan cars, and won't interrupt even in their service operations. However, at corporate level the bosses have changed, and now Renault will become the superior. Moreover, this decision will provides an oppurtunity for Renault to expand its international business. Also, after acquiring the group, RNAIPL will invest Rs 1,850 Cr and they are also confident of achieving a free cash flow of Rs 18, 507 Cr in 2025.

Future Plans

As part of its "2027 International Game Plan", Renault Group will accelerate its development in India.  The RNAIPL plant in Chennai benefits from a deep and highly competitive supplier ecosystem and has a 400k+ units production capacity. It currently hosts the CMF-A and CMF-A+ platforms and would offer strong opportunities for further developments with the launch of the CMF-B platform next year starting with 4 new models to come.

Nissan

This amendment to the New Alliance Agreement between Renault Group and Nissan signifies a strategic shift in their partnership. By reducing the lock-up requirement from 15% to 10%, both companies gain more flexibility in managing their cross-shareholdings. This move could pave the way for potential stake sales or realignments without completely severing ties, allowing each company to pursue independent growth strategies while maintaining their alliance.

Renault Group, through its electric vehicle subsidiary Ampere, will develop and produce a small A-segment car (similar to the Twingo) for Nissan starting in 2026. Nissan will design the car, but Renault will handle development, helping to cut costs and speed up production. As a result, Nissan will no longer need to invest in Ampere but will still move forward with planned joint projects.

Nissan CEO 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 turnaround its performance as quickly as possible. Pragmatism and business-oriented mindset were at the core of our discussions to identify the most effective ways of supporting their recovery plan while developing value-creating business opportunities for Renault Group. This Framework Agreement, beneficial for both parties, is the proof of the agile and efficient mindset of the new Alliance. It also confirms the attractiveness of our products with Twingo as well as our ambition to grow our business on international markets. India is a key automotive market and Renault Group will put in place an efficient industrial footprint and ecosystem," said Luca de Meo, CEO of Renault Group.

Verdict

This strategic decision clearly shows that Nissan wants to make its business more flexible and responsive to market changes. Additionally, the company remains committed to India and plans to launch a C-segment SUV based on the Renault Duster and an MPV based on the Triber by 2026. Lastly, even after gaining full ownership, Nissan will continue producing cars for both the Indian and international markets at its Chennai plant. Let's hope this legendary company gets back on track and regains its lost glory.

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