French automaker Renault announced on Monday a decisive move to acquire Nissan’s 51% stake in their Indian joint venture, Renault Nissan Automotive India Private Ltd (RNAIPL), bringing its ownership to 100%.
The deal, sealed through a share purchase agreement, marks a pivotal shift in the Renault-Nissan Alliance’s 17-year partnership in India, though financial specifics remain undisclosed.
RNAIPL, established in 2005 and operational since 2010 at its sprawling 600-acre Oragadam plant near Chennai, will now fall entirely under Renault Group’s banner. The facility, with a capacity of 480,000 vehicles annually, has produced over 2.75 million cars and exported to 108 countries, bolstering India’s auto hub status.
Post-acquisition, Renault will consolidate RNAIPL fully in its financial statements, projecting a €200 million free cash flow impact in 2025 amid peak investments for new vehicle launches.
The agreement ensures continuity, with Nissan retaining sourcing rights for models like the New Nissan Magnite, produced at RNAIPL, for both domestic sales and exports. Meanwhile, the Renault Nissan Technology & Business Centre India (RNTBCI) remains a joint operation, with Renault holding 51% and Nissan 49%, safeguarding their collaborative R&D efforts.
A standout feature of the deal is Renault’s Ampere unit—Europe’s first intelligent EV player—set to develop a Twingo-derived A-segment vehicle for Nissan from 2026, designed by Nissan, amplifying Renault’s global reach.
Renault Group CEO Luca de Meo framed the move as a win-win, stating, “As a long-time partner of Nissan within the Alliance and 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.”
He hailed the framework as proof of the Alliance’s agility, spotlighting India as a key growth market.
Nissan’s incoming President and CEO Ivan Espinosa reaffirmed their commitment, saying, “We remain dedicated to India, delivering vehicles tailored to local needs while ensuring top-notch sales and service.” He emphasized ongoing SUV plans and exports under Nissan’s “One Car, One World” strategy, with India retaining its R&D hub status.
The buyout follows a 2023 equity rejig shifting RNAIPL from 70:30 (Nissan-led) to 51:49, reflecting a broader Alliance reboot. For Renault, it’s a bold step to leverage India’s automotive potential, while Nissan refocuses on recovery without operational control in Chennai. As 2025 unfolds, RNAIPL’s new era under Renault promises a revved-up future.