French automobile giant Renault has announced that it will fully acquire its Indian joint venture with Nissan, Renault Nissan Automotive India Private Ltd (RNAIPL), by purchasing Nissan’s 51 per cent stake.
This move will grant Renault complete ownership of the company. The JV firm operates the alliance’s Chennai-based production facility, which rolls out models for both Renault and Nissan brands.
Both auto makers have amended the new alliance agreement setting the lock-up undertaking of both Renault Group and Nissan at 10 per cent (instead of 15 per cent).
Renault said that the acquisition will present an opportunity to expand in international markets while Nissan with its own presence will continue to also grow its business.
The financial specifics of the transaction were not disclosed. The Renault group and Nissan have signed a share purchase agreement to finalise the deal. Subject to regulatory approvals, the transaction is expected to be complete by the first half of 2025. Once completed, the Renault group will take full control of RNAIPL, marking a shift in their partnership in India.
Despite the change in ownership, Renault and Nissan will continue to collaborate on ongoing projects and define the future framework of their relationship in the Indian market. Nissan will maintain its use of RNAIPL for vehicle sourcing, both for domestic sales and exports.
In addition to RNAIPL, Renault and Nissan will continue their joint operations at Renault Nissan Technology & Business Center India (RNTBCI), with Renault retaining a 51 per cent stake and Nissan holding 49 per cent.
RNAIPL will remain responsible for manufacturing Nissan models, including the latest Nissan Magnite.
As part of their collaboration, Renault Group, through its subsidiary Ampere, plans to develop and manufacture a new derivative of the Twingo — a compact A-segment vehicle — for Nissan by 2026. This model will be designed by Nissan and represents an important opportunity for Renault to enhance its global business.
Renault group CEO Luca de Meo emphasised the significance of the agreement, stating that it reflects a pragmatic, business-driven approach to strengthening Nissan’s recovery, while creating new value for Renault. “India is a key automotive market and Renault Group will put in place an efficient industrial footprint and ecosystem,” he said.
Renault also said that 2025 is a peak investment year for RNAIPL, coinciding with vehicle launches, with an anticipated free cash flow impact of approximately 200 million euros, assuming the deal is completed by mid-2025.
Nissan’s incoming president and CEO, Ivan Espinosa, reaffirmed the company’s commitment to the Indian market. He said that Nissan’s plans for new SUVs in the India market remain intact along with export from India.