Renault Group buys out 51% stake in Renault Nissan Automotive india

French automaker, Renault Group on Monday said it would own 100 per cent of Renault Nissan Automotive India Private Ltd (RNAIPL), by acquiring the 51 per cent-shareholding currently held by Nissan.

This project represents a key opportunity for Renault to expand its international business. Nissan will maintain its presence in India with a strong focus on increasing market coverage, the companies 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 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,” Luca de Meo, Chief Executive Officer, Renault Group, said.

The new Alliance agreement would be amended to increase the flexibility of each party regarding their cross-shareholdings by setting the lock-up undertaking at 10 per cent (instead of 15 per cent currently), Renault said adding that Nissan would be released from its commitment to invest in Ampere while continuing the agreed product projects.

“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 on international markets. India is a key automotive market and Renault Group will put in place an efficient industrial footprint and ecosystem,” Meo added.

Future plans

Renault Group, through Ampere, the first European intelligent electric vehicle (EV) pure player, would develop and produce a derivative of Twingo, a A-segment vehicle, for Nissan from 2026, confirming its know-how and roadmap for reducing development costs and time. This model will be designed by Nissan, the companies said.

The auto majors said that this is an operational agreement to continue the current projects between the companies, and to define the future relationship of Renault Group and Nissan in India.

Nissan will continue to use RNAIPL as a sourcing for India and export in the coming years and this transaction is subject to customary regulatory approvals and its completion is expected by the end of first half of 2025.

Renault Group and Nissan will continue to operate jointly Renault Nissan Technology & Business Centre India (RNTBCI) in which Nissan will retain its 49 per cent stake and Renault Group its 51 per cent stake, they added.

“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.

“India will remain a hub for our research and development, digital and other knowledge services. Our plans for new SUVs in the India market remain intact, and we will continue our vehicle exports to other markets under the ‘One Car, One World’ business strategy for India,” Ivan Espinosa, President and CEO of Nissan, said.