Renault Set To Acquire The Remaining 51% Stake, In-Charge Of RNAIPL Manufacturing Facility In Chennai
Renault is set to acquire the remaining 51% stake in Renault Nissan Automotive India Private Ltd. As of present, Nissan is the majority shareholder in the 51:49 shareholding structure. The purchasing of this stake signals a complete ownership of the operations of the Renault-Nissan Alliance India.
Details Of The New Agreement
This strategic decision grants Renault full authority over their Chennai manufacturing facility, previously operated as a joint venture under Renault-Nissan Automotive India Pvt Ltd (RNAIPL). With an annual production capacity of 4,80,000 vehicles, this state-of-the-art plant will now serve as the cornerstone of Renault’s ambitious plans for the Indian market.
The RNAIPL commenced operations in 2010, with Renault holding a 30% stake and Nissan holding a 70% stake. In a deal signed in 2023, Nissan’s stake was reduced to 51%. This deal also meant that both manufacturers agreed to invest $600 million jointly to produce six new passenger vehicles in India.
Under the new agreement, the Japanese and French automakers will be able to reduce their cross-ownership to no less than 10%, from 15% previously. Renault will also produce a small electric car for Nissan from next year, as part of adapting to an EV-centric market.
This agreement was also signed just a day before Ivan Espinosa gained control as the CEO of Nissan Motor Corp. He replaces Makoto Uchida after a partnership with Honda Motor Co. failed to materialise. Renault still remains Nissan’s biggest shareholder, holding a 36% stake. However, the French automaker has been unwinding the partnership, as mutual suspicion and competition arise.
Development & Differenciation
It is now the responsibility of Renault to develop the products and maintain the differentiation with its Japanese partners. This agreement has also released the pressure from a commitment to invest in Renault’s EV arm, Ampere. Ampere is tasked with the production and development of a vehicle designed by Nissan and based on the Renault Twingo from 2026.
Outlook
This strategic realignment underscores Renault’s commitment to the Indian market and its vision for future mobility solutions. It is important to note that both companies will continue to operate Renault Nissan Technology & Business Centre India (RNTBCI) under the existing 51:49 structure. The coming years shall reveal whether this strategic gamble enables Renault to secure a better position in India’s fiercely competitive automotive landscape.
Source – ETAuto.com
