Renault to Acquire Nissan’s 51% Stake in Indian JV, Will Gain Operational Control

Renault Group is set to acquire Nissan’s 51% stake in their Indian joint venture, Renault-Nissan Automotive India Private Ltd (RNAIPL), marking a strategic shift in the companies’ long-standing partnership. The deal will grant Renault operational control over the venture's production plant, strengthening its presence in the rapidly growing Indian automotive market. This move aligns with Renault’s broader global strategy to enhance its market position and streamline operations in key regions. By taking majority ownership, Renault aims to drive product innovation, optimise manufacturing, and expand its footprint in India. The transaction also reflects a recallibration of Renault and Nissan’s alliance, as both companies seek greater independence while maintaining collaborative synergies. 

Commenting on the announcement, Luca de Meo, CEO of Renault Group, said, '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 a 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 in international markets. India is a key automotive market and Renault Group will put in place an efficient industrial footprint and ecosystem.'

Renault-Nissan Automotive India Private Ltd (RNAIPL): Key Details

The RNAIPL plant in Chennai commenced operations in 2010, with a stake split of 70% for Nissan and 30% for Renault. In 2023, however, the two automakers reached an agreement that reduced the Japanese automaker's share to 51%. As part of this revised arrangement, Renault and Nissan agreed to invest USD 600 million collectively to manufacture and introduce six new passenger vehicle models in India.

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Both companies have decided to further loosen their decades-long collaboration, allowing for greater flexibility in selling their shares. Under the revised terms, their mutual ownership stakes can now be lowered to a minimum of 10%, down from the previous 15%, according to Renault.

Renault remains Nissan’s largest stakeholder, holding 36% of its shares. As stated in an official release, this transition provides Renault with a crucial opportunity to enhance its global reach, while Nissan aims to bolster its presence in India by widening its market scope. The company will continue utilising RNAIPL as a key manufacturing hub for both domestic distribution and exports. The transaction, subject to regulatory clearance, is expected to be finalised by mid-2025. Moreover, Nissan will no longer be required to fund Renault’s electric vehicle unit, Ampere, which is set to develop a Nissan-designed model inspired by Renault’s Twingo starting in 2026.

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Despite these adjustments, Renault and Nissan will maintain their partnership at the Renault Nissan Technology & Business Centre India (RNTBCI), where Renault holds a 51% stake and Nissan 49%. Upon completion of the transaction, RNAIPL will be fully incorporated into Renault Group’s financial statements. Additionally, substantial investments are planned for RNAIPL throughout the year to support the rollout of new models, with an estimated free cash flow impact of approximately Euro 200 million.

What Nissan Has to Say

Ivan Espinosa, President and CEO of Nissan, remarked, '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 Indian market remain intact, and we will continue our vehicle exports to other markets under the “One Car, One World” business strategy for India.'