Renault’s Bold Move: Acquiring Nissan’s 51% Stake in India for Growth by 2025
Renault Group is set to acquire Nissan’s 51% stake in their Indian joint venture, Renault Nissan Automotive India Private Ltd (RNAIPL). This move will make Renault the sole owner of the Chennai-based manufacturing unit, with the deal expected to be completed by mid-2025. Initially, Nissan held a 70% stake in RNAIPL, but it was reduced to 51% in 2023 as part of a $600 million investment for new car production in India. As part of their revised partnership, Renault and Nissan have also agreed to cut their cross-shareholdings from 15% to 10%.
Additionally, Nissan is no longer required to invest in Renault’s EV unit, Ampere, which was initially set to receive €600 million from the Japanese carmaker. Renault CEO Luca de Meo emphasized the strategic benefits of this acquisition, supporting Nissan’s turnaround while strengthening Renault’s business opportunities. Despite the financial commitment, Renault expects a strong cash flow of over €2 billion in 2025. This announcement comes ahead of Ivan Espinosa taking over as Nissan’s new CEO, tasked with driving the company’s global competitiveness.
Renault’s Bold Move: Acquiring Nissan’s 51% Stake in India for Growth by 2025
Renault Group has announced plans to take full control of its Indian manufacturing partnership with Nissan. The company will acquire Nissan’s 51% stake in Renault Nissan Automotive India Private Ltd (RNAIPL), a joint venture based in Chennai that began operations in 2010. Once finalized by mid-2025, Renault will own 100% of the facility, marking a significant shift in their long-standing collaboration.
The joint venture initially had Nissan holding a 70% stake and Renault owning 30%. However, in 2023, Nissan reduced its share to 51% as part of a $600 million deal to manufacture six new car models in India. Renault’s latest decision to acquire Nissan’s remaining stake signals a strategic realignment between the two automakers.
Alongside the ownership change, Renault and Nissan have agreed to restructure their broader partnership. Previously, both companies held a 15% stake in each other, but this cross-shareholding will now be reduced to 10%, loosening their financial ties. Additionally, Nissan has withdrawn from its prior commitment to invest €600 million in Ampere, Renault’s electric vehicle (EV) division. This decision reflects a shift in priorities as both companies navigate the competitive EV market independently.
Renault’s CEO, Luca de Meo, highlighted the importance of this restructuring, stating that it allows Renault to support Nissan’s recovery while exploring new opportunities. Despite the costs tied to acquiring RNAIPL, Renault remains optimistic about its financial health, projecting cash flow to exceed €2 billion in 2025. De Meo emphasized that the deal will strengthen Renault’s position in India, a key growth market.
The announcement comes just ahead of a leadership transition at Nissan. Ivan Espinosa, who is set to take over as Nissan’s new CEO, faces the challenge of revitalizing the company’s global strategy. Analysts suggest that the revised partnership with Renault could give Nissan more flexibility to focus on its own goals, including electrification and expansion in key regions like North America and China.
For Renault, full ownership of RNAIPL provides greater control over production and strategy in India. The Chennai plant, which manufactures vehicles for both brands, is central to Renault’s ambitions in one of the world’s fastest-growing automotive markets. With India’s increasing demand for affordable cars and EVs, Renault aims to leverage this facility to boost both local and export sales.
The restructuring also reflects broader trends in the auto industry, where partnerships are evolving to address rising competition and the costly transition to electric mobility. By simplifying their alliance, Renault and Nissan can reduce complexities and allocate resources more efficiently. For instance, Renault’s focus on Ampere aligns with its goal to lead in EVs, while Nissan may redirect investments toward its own electrification projects.
While Renault’s acquisition of RNAIPL is a bold step, questions remain about how Nissan will adapt without direct involvement in Ampere. The company has yet to outline detailed plans for its EV strategy but has hinted at prioritizing hybrid technologies and next-generation batteries. Meanwhile, Renault’s bet on India could pay off if it successfully capitalizes on the country’s potential to become a global manufacturing hub.
In summary, Renault’s takeover of RNAIPL marks a new chapter for both companies. For Renault, it’s an opportunity to solidify its presence in India and drive its EV ambitions forward. For Nissan, it’s a chance to streamline operations and focus on core markets. As the automotive industry undergoes rapid transformation, this revised partnership highlights the delicate balance between collaboration and independence.
The deal’s completion in 2025 will be a key milestone, offering insights into how these automakers adapt to evolving market demands, technological advancements, and regional growth opportunities. With fresh leadership at Nissan and Renault’s strategic moves, the coming years will test both companies’ ability to thrive in an era defined by innovation and competition.