Renault Group Gets CCI Approval to Acquire 51% Stake in Renault-Nissan Automotive India

Renault Group has secured approval from the Competition Commission of India (CCI) to acquire the remaining 51% stake in Renault Nissan Automotive India Pvt Ltd (RNAIPL), its long-standing joint venture with Nissan. This approval paves the way for Renault to take complete ownership of the Chennai-based manufacturing plant, which the two automakers have co-managed since 2010. As part of the transaction, Renault Group B.V. and Renault S.A.S. will purchase both equity and zero-coupon preference shares held by Nissan Motor Co., Ltd. and Nissan Overseas Investments B.V. Although Nissan will exit the ownership structure, it will continue to source vehicles from the facility through a manufacturing agreement. The move marks a major shift in the Renault-Nissan alliance, granting Renault full control of its Indian manufacturing operations.

Renault Gets Green Light to Acquire Remaining Stake in India JV

Renault is moving to gain full control of its Indian production operations at a time when its position in the market has been weakening. The brand has faced a significant slump in performance, with domestic sales falling by 30% in the April-June quarter year-on-year, and its market share shrinking to under 1%. In an effort to reverse this trend, Renault is aiming to scale up its presence and reclaim up to 5% of the Indian passenger vehicle market.

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Although Renault is set to acquire full ownership of the RNAIPL plant in Chennai, the facility will continue to produce vehicles for both Renault and Nissan under a contract manufacturing arrangement. The Japanese carmaker has affirmed its plans to source models from this site for both local sales and export.

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Meanwhile, the broader Renault-Nissan alliance will continue to operate in other areas. Their technology and business operations under RNTBCI will continue as a jointly run venture, with Renault holding a 51% stake and Nissan the remaining 49%.