Renault controls the full arm of Indian manufacturing. In a strategic move to unify its presence in one of the fastest car markets in the world, the French auto giant announced that it will buy Nissan 51 % stake in its Renault Nissan Automotive India Private Ltd (RNAPL). The deal, although it is not disclosed in value, will make Renault the only owner of the China -based Chennai Factory, a decisive production center for both companies.
The deal, which is completed through the stock purchase agreement, will witness the Renault Group full ownership of RNAPL from its Japanese partner Nissan. Companies will continue to cooperate in current projects in India through an operating agreement that also defines their future relationship in the country.
Nissan will maintain RNAPL for local vehicle sources and export in the coming years. The two companies will also retain joint control of the Renault Nissan Center for Technology and Business of India (RNTBCI), with Renault with 51 % and Nissan of 49 %.
Despite the transformation of ownership, the Chennai facility will remain essential in the plans of auto companies. You will continue to produce major Nissan models such as the new Nissan Magnit, while supporting Renault’s broader goals in the framework of the “International Game Plan for 2027”. The site, which includes a production capacity of more than 400,000 units, will host the launch of the CMF-B in 2026, starting from four new Renault models.
Renault has also announced that through the affiliate-based Ampre-it will develop and manufacture a new A. Class vehicle derived from Twingo to Nissan by 2026. While Renault will lead production, the model will be designed by Nissan.
“This project represents a major opportunity for Renault to expand its international business,” the company said, with a focus on Nissan’s continuous focus on increasing the market coverage in India.
Luca De Meo, CEO of Renault Group, stressed the cooperative spirit behind the deal: “The pragmatic and mental directed at the core of our discussions to determine the most effective ways to support their recovery plan with developing job opportunities to create value for the Renault Group,” said Luca de Meo, CEO of Renault Group.
He added: “India is a major car market and the Renault Group will put in place with an effective industrial text and an environmental system.”
After the treatment, Rnaipl will be fully integrated into Renault’s financial data. The company expects a free cash flow effect of about 200 million euros in 2025, and is compatible with the Peak Investment course for the launch of new vehicles.
The President and CEO of Nissan, Evan Espinoza, affirmed the company’s continuous commitment: “India will remain a center for our research, development, digital knowledge services and other services for new payment cars in the India market.”
(With inputs of agencies)
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