France-based Renault Group (RG) has confirmed it will acquire the remaining 51% stake in Renault Nissan Automotive India Pvt Ltd (RNAIPL) from Japan-based Nissan Motor Corp. This means that RG will have 100% ownership of the manufacturing facility in Chennai. It marks a pivotal shift in the French automaker’s international business strategy, as India is emerging as a key player in its global operations.
It may be recalled that RNAIPL was established in 2010 as a 70:30 joint venture (Nissan: Renault) that has become a core manufacturing base for both brands. The Chennai manufacturing unit has a production capacity of over 400,000 vehicles annually and currently produces models based on the CMF-A and CMF-A+ platforms. As part of its”2027 International Game Plan”, RG will accelerate its development in India. The RNAIPL plant in Chennai benefits from a deep and highly competitive supplier ecosystem, and the firm plans to introduce the CMF-B platform in 2026, along with four new models.
The transaction between RG and RNAIPL is expected to be completed before the end of H1 2025 and is anticipated to generate approximately €200 million in free cash flow for Nissan.
After the takeover, Renault Group CEO Luca de Meo visited the Indian manufacturing plant, underscoring India’s strategic importance across manufacturing, R&D, and exports. He also discussed the company’s long-term commitment to the factory employees. Although RG assumes complete control of RNAIPL, the two automakers will continue their collaboration through the RNTBCI joint venture. Interestingly, RG will develop and produce a derivative of Twingo, which Nissan earlier designed for Nissan.
Industry experts perceive this as a total shift in Renault’s global business roadmap, with India emerging as a central hub for various automotive business aspirations.
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British-Indian Chandan Basu Mallik has been an automotive petrol head and journalist/editor for over thirty years. He has worked in the UK and the Middle East and is currently in India. You can learn more about his work on his LinkedIn profile: https://www.linkedin.com/in/chandan-mallik-34aa47320/. You can write to Chandan at theprimeavenue@gmail.com