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Renault acquires Nissan’s 51% stake in its India manufacturing unit, becoming sole owner. The deal will not affect Nissan’s operations, workforce, or new model rollouts. Renault continues car production.
The Renault Group on Monday announced acquiring the entire 51% stake of Nissan in Renault Nissan Automotive India (RNAIPL), becoming its sole owner.
The deal will not impact Nissan’s operations in India — existing and future production, and new model roll-outs — or lead to any workforce restructuring, a senior company official said at a press conference.
The deal, which is expected to be completed by the end of the first half of this year and financial details of which were not disclosed, further loosens the two-decade-old partnership between French auto major Renault and Nissan and is aimed at making the Japanese carmaker “leaner and more agile”.
“As a long-time partner of Nissan within the alliance and as its main shareholder, Renault Group has a strong interest in seeing Nissan turn around its performance as quickly as possible,” Renault CEO Luca de Meo said in a statement.
The deal comes a day before Ivan Espinosa takes over as CEO of Nissan, which is under pressure to significantly boost its competitiveness.
“Nissan is committed to preserving the value and benefits of our strategic partnership within the alliance while implementing turnaround measures to enhance efficiencies,” said incoming CEO Espinosa in the statement. As a result of Renault’s buyout of RNAIPL, Nissan will cease making cars in India and will focus on sales and service. Renault will continue to make cars for Nissan at its factory in Chennai in Tamil Nadu.
At the press conference, Frank Torres, divisional vice president of AMIEO (Africa, Middle East, India, Europe and Oceania) region business transformation & president of Nissan India Operations, said the deal is part of the global turnaround actions at Nissan Motor.
“We have already secured the capacity for our current and future models,” Torres said, adding the lifespan of existing models extends until 2032.
RNAIPL’s 600-acre Chennai facility caters to both domestic and export market requirements of Renault and Nissan.
Earlier this year, Nissan Motor announced €700 million in investments in India, including the launch of six new models. Torres said almost 80% of that amount has already been spent, including €100 million on the New Nissan Magnite, while the remaining funds are allocated for two new SUVs and EVs.
Torres said the decision to exit RNAIPL is aimed at shifting from a fixed-cost structure to a variable-cost model. “We will be paying on a per-car basis. This is giving a good enough flexibility and on top will also give additional cash that we can be able to ensure for the future models investments,” he added.
RNAIPL recently announced that it has produced more than 2.75 million Renault and Nissan vehicles and over 4.5 million powertrain units from the Chennai facility since its inception in 2010. The plant currently employs over 6,300 people, including 4,958 permanent and contract workers, in addition to 1,695 temporary workers. Torres said there will be no impact on the workforce. “After the shareholding change, Renault will decide on how to rename the new company but there is no impact on the employment,” he said.
He also said the latest development will not affect Renault Nissan Technology and Business Centre India (RNTBCI), the tech arm of the Renault-Nissan Alliance. Renault and Nissan hold a 51% and 49% stake in RNTBCI, respectively.
Nissan India open to contract manufacturing with other OEMs
Frank Torres said Nissan Motor India is open to exploring contract manufacturing partnerships with other OEMs. “We are evaluating opportunities in the Indian market to determine how efficiently and quickly we can bring models to market, but at the moment, there’s nothing to disclose,” he said. He added that the immediate focus is on delivering the planned line-up of six new models. “Based on our future lineup and potential synergies, we will decide our manufacturing strategy,” Torres added.
(With agency inputs)
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This article was first uploaded on March thirty-one, twenty twenty-five, at thirty-two minutes past eleven in the night.
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