French automotive giant Renault Group is set to acquire Nissan’s 51 percent stake in Renault Nissan Automotive India (RNAIPL), taking full control of the Chennai-based joint venture. Renault already owns the remaining 49 percent, making this a complete transition in ownership. The deal aligns with Nissan’s broader turnaround strategy and is expected to be finalized by mid-2025, pending regulatory approvals.
Nissan Retains Presence in India
Despite selling its stake in RNAIPL, Nissan has clarified that it is not exiting the Indian market. The company will continue to use the Chennai facility as a key sourcing hub for its popular models, including the Magnite, for both domestic sales and exports. Nissan also remains committed to research and development, digital services, and other operational functions in India.
“We remain dedicated to Indian consumers, ensuring top-tier sales, service, and new SUV launches while maintaining our export operations,” said Ivan Espinosa, CEO of Nissan. The company’s “One Car, One World” strategy reinforces its commitment to global markets, including India.
Nissan’s Production and Future Plans
Nissan India president Frank Torres emphasized that the restructuring is aimed at profitability. The company is optimizing production, ensuring efficiency, and exploring contract manufacturing partnerships with other automakers. Nissan, which produced 99,000 units at the Chennai plant in FY24, aims to increase this to 100,000 units each for domestic and export markets by 2026.
The company has already allocated €700 million for new model launches and dealership expansion, with 80 percent of the investment utilized. Importantly, the transition will not impact the plant’s 4,958 permanent employees or 1,600 contract workers.
Renault’s Expansion Plans
Renault, as Nissan’s largest shareholder, remains invested in the Japanese automaker’s turnaround. Renault CEO Luca de Meo emphasized that the decision was guided by pragmatism and business value. The Chennai plant, with an annual capacity of 400,000 units, is a major production hub with a robust supplier ecosystem. Renault is set to introduce the CMF-B platform in India next year, launching four new models as part of its “2027 International Game Plan.”
Nissan’s Global Turnaround Strategy
Nissan’s global restructuring, announced in November, includes cutting 9,000 jobs, reducing production capacity by 20 percent, and slashing profit forecasts by 70 percent due to weak sales in China and the US. A potential $60 billion merger with Honda collapsed in February over disputes, including Renault’s stake in Nissan.
Despite its exit from RNAIPL, Nissan will continue collaborating with Renault at Renault Nissan Technology and Business Centre India (RNTBCI), where it retains a 49 percent stake.
