Renault to Take Over Nissan’s Stake in Indian Joint Venture: What Lies Ahead for Nissan?

In a significant development in the Indian automotive industry, Renault is set to take full operational control over Renault Nissan Automotive India Private Ltd (RNAIPL). The French automaker will acquire Nissan’s 51% stake in the joint venture, thus becoming the sole owner of the manufacturing plant in Chennai. This strategic move will enable Renault to streamline operations, optimize production, and strengthen its presence in India.

Nissan’s Global Challenges and the Fallout of the Honda Partnership

Nissan has been facing turbulent times globally, marked by setbacks in strategic collaborations. A major blow came when its proposed partnership with Honda was called off, reportedly due to internal disagreements within Nissan’s top management. This raises concerns about Nissan's independent future in India and whether Renault's increased stake signals a diminishing role for the Japanese automaker in the country.

Nissan’s Future in India: A Subsidiary of Renault?

Despite the acquisition, Nissan is not exiting the Indian market. Instead, it will function as a subsidiary of Renault, continuing to operate and launch new models under its brand name. Upcoming models for the Indian market include a rebadged version of the Renault Triber and a C-segment SUV based on the next-generation Renault Duster. While Nissan retains decision-making authority over new model launches, it will rely on Renault for manufacturing and operational support.

RNAIPL's Role in India and Global Exports

The framework agreement signed by Renault and Nissan ensures that RNAIPL will remain a crucial manufacturing hub for both domestic sales and global exports. Nissan will continue leveraging the Chennai facility to source and export vehicles.

However, with Renault holding the majority stake, it is expected to influence production schedules, model allocation, and overall operational strategy. The transaction remains subject to regulatory approvals and is expected to conclude by the first half of 2025.

Renault and Nissan’s Joint Operations: RNTBCI

Renault and Nissan will continue collaborating through the Renault Nissan Technology & Business Center India (RNTBCI). In this entity, Renault will retain a 51% stake, while Nissan will hold 49%. Despite joint operations, Renault’s dominance in RNAIPL could impact Nissan’s production volume and model allocation, creating an imbalance in decision-making power.

Production Capacity and Future Plans

The RNAIPL facility in Chennai currently boasts an annual production capacity of 400,000 units. It houses the CMF-A and CMF-A+ platforms, producing models like the Renault Kiger and Nissan Magnite. Future developments at the plant will focus on launching the CMF-B platform, starting with the next-generation Renault Duster in early 2026, followed by its seven-seat variant.

Upcoming Renault and Nissan Models in India

As per the new business structure, at least four new models underpinned by the CMF-B platform will be launched in India, two of which will carry the Nissan badge. However, Renault’s majority stake in RNAIPL means it will have a significant influence over Nissan’s production volume, assembly line allocation, and market strategy.

Conclusion

Renault's acquisition of Nissan’s stake in RNAIPL marks a transformative shift in the Indian automotive landscape. While Nissan continues to operate in India, its dependency on Renault for manufacturing and operations may redefine its autonomy. With Renault steering the production strategy, the future of Nissan in India will largely depend on how well the two automakers collaborate under this new arrangement.