Renault Gets Green Light To Fully Own India Factory After Nissan Exit | Car News

Renault Gets Green Light to Fully Own India Factory After Nissan Exit

The Competition Commission of India has approved Renault Group’s move to take full control of its Indian manufacturing joint venture by buying out Nissan’s remaining stake. This marks a big change in their long-running partnership and gives Renault complete ownership of the car manufacturing plant near Chennai.

What’s Changing?

Renault will now own 100% of Renault Nissan Automotive India Private Limited (RNAIPL) after buying Nissan’s 51% stake. This Chennai-based plant, set up in 2010, was once a symbol of the global Renault-Nissan alliance. It has built over 2.5 million vehicles in the last 15 years, exporting more than 1.15 million cars to 108 countries.

Originally, Renault had a 30% stake and Nissan held 70%. In 2023, Nissan had reduced its share to 51% under a $600 million investment plan for launching new models, including electric vehicles. Now, Renault is taking over completely, aiming to strengthen its presence in India.

Why This Matters

Even though Renault is now the sole owner, both companies will continue working together. Nissan will still use the factory under a contract manufacturing arrangement. Renault will build both Renault and Nissan cars, including future models, until the end of their production cycles.

Nissan’s decision reflects a global strategy to reduce fixed costs and increase flexibility. “We need to take measures that can help improve both efficiency and fixed-cost management at the same time,” said Frank Torres, President of Nissan India Operations.

A Look at the Chennai Plant

Located in Oragadam near Chennai, the plant covers 600 acres and can produce up to 480,000 cars a year. It has helped create jobs for over 70,000 people and achieved milestones like building one car every three minutes.

Renault currently sells three models in India — Kwid, Triber, and Kiger — and plans to launch more using a new CMF-B platform from next year. Nissan, meanwhile, sells the Magnite and X-Trail, and is evaluating future production options for its upcoming models beyond 2026.

What’s Next?

This move gives Renault greater control over its operations in India and might help the brand become more competitive. The company is also in early talks with JSW Group for a possible partnership to expand further.

On the other hand, Nissan’s new strategy lets it continue selling cars in India while reducing investment risks. Though the company built nearly 99,000 vehicles last year — its best in seven years — only 28,000 were sold in India, with the rest exported.

The Chennai plant is also working toward becoming carbon neutral by 2045 and already uses 60% renewable energy, showing a focus on sustainability.

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