“Renault Group would own 100% of Renault Nissan Automotive India Private Ltd. (RNAIPL) by acquiring the 51% shareholding currently held by Nissan,” a release said. The financial details of the acquisition are, however, not disclosed.
“This project represents a key opportunity for Renault to expand its international business. Nissan will maintain its presence in India with a strong focus on increasing market coverage. RNAIPL would continue to produce Nissan models, including the New Nissan Magnite, and will serve as a crucial pillar for the company’s future expansion plans,” the release added.
“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. . 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.
“Nissan is committed to preserving the value and benefits of our strategic partnership within the Alliance while implementing turnaround measures to enhance efficiencies. Our goal is to create a more agile and effective business model that allows us to respond quickly to changing market conditions and conserve cash for future investments. We remain committed to the Indian market, delivering vehicles tailored to local consumer needs while ensuring top-notch sales and service for our existing and future customers. India will remain a hub for our research and development, digital and other knowledge services. Our plans for new SUVs in the India market remain intact, and we will continue our vehicle exports to other markets under the “One Car, One World” business strategy for India,” said Ivan Espinosa, President and CEO of Nissan. Besides a Share Purchase Agreement relating to the acquisition by Renault Group of 51% of RNAIPL currently owned by Nissan, both have agreed on an operational agreement to “continue the current projects between Renault Group and Nissan, and to define the future relationship of Renault Group and Nissan in India. Nissan will continue to use RNAIPL as a sourcing for India and export in the coming years.
- This transaction, however, is subject to customary regulatory approvals. Its completion is expected by the end of H1 2025.
- Renault Group and Nissan will continue to operate jointly Renault Nissan Technology & Business Center India (RNTBCI) in which Nissan will retain its 49%-stake and Renault Group its 51%-stake.
It was on August 26, 2008, the foundation stone for what would eventually become the state-of-the-art manufacturing facility of Renault Nissan Automotive India Pvt. Ltd. (RNAIPL) was laid in the rapidly developing automotive cluster of Oragadam on the outskirts of Chennai. Now, a change of a different kind has hit the joint venture. The joint venture saw some interesting milestones. Just consider these:
* RNAIPL is the first dedicated Alliance manufacturing plant globally for the Renault Nissan Alliance.
* From its foundation in 2008 to the production of its first car in May 2010, the manufacturing facilities of RNAIPL were constructed and went live in record time.
* The first car produced by RNAIPL was a Nissan Micra.
* RNAIPL manufactured its first 100,000 vehicles within a year of start of operations
* On average, RNAIPL has built one car every three minutes since the start of production.
* RNAIPL has manufactured over 20 models of Renault and Nissan cars.
* By September 2013, RNAIPL had manufactured half a million vehicles. 1 million milestones reached by January 2016.
* By July 2023, RNAIPL had manufactured more than 2.5 million cars
* RNAIPL was the first auto manufacturer to use Kamarajar Port (previously Ennore Port) to export cars.
Nissan, in the meanwhile, has reported FY2024-25 consolidated sales (Export + Domestic) of 99,000+ units, highest single year consolidated sales in 7 years since FY 2017-18. Consolidated Annual Sales witnessed 35% YoY growth on the back of a stellar performance by the New Nissan Magnite B-SUV in domestic and export markets. Nissan’s export business witnessed 71,000+ units driven by the New Nissan Magnite RHD & LHD variants under its ‘One Car, One World’ plan.
