Nissan to sell 51% stake in India JV to Renault

Renault Group will own 100% of Renault Nissan Automotive India Pvt Ltd (RNAIPL) by acquiring the 51% shareholding currently held by Nissan. This represents a key opportunity for Renault to expand its international business, the French carmaker said in a statement.

Japanese carmaker Nissan has struggled to increase its market share in India. Renault will continue to produce Nissan models, including the New Nissan Magnite, and will serve as a crucial pillar for the company's future expansion plans.

Nissan will continue to use RNAIPL for sourcing for India and export in the coming years. The completion of the transaction is expected by the end of the first half of 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.

Japanese carmaker Nissan said it will maintain its presence in India with a strong focus on increasing market coverage.

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 400,000-plus 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," said the French carmaker.

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.

"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," said Meo.

Nissan has chosen Renault Group to develop and produce a derivative of Twingo, designed by Nissan. "The New Alliance Agreement would be amended to increase the flexibility of each party regarding their cross-shareholdings by setting the lock-up undertaking at 10% (instead of 15% currently). Nissan would be released from its commitment to invest in Ampere while continuing the agreed product projects," the automakers said.

"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.