Renault, Nissan re-negotiate deal
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Nissan has re-negotiated several aspects of its deal with Renault as it faces the prospect of a takeover by Honda.
Renault is to take over the joint venture between the two companies in India, buying Nissan’s 51% stake in Renault Nissan Automotive India Private Ltd (RNAIPL) in Chennai. An operational agreement will continue the current projects between the two and define the future relationship in India. Nissan will continue to use RNAIPL as a sourcing for India and export in the coming years.
The RNAIPL plant in Chennai can produce 400k+ vehicles a year and currently produces the CMF-A and CMF-A+ Common Module Family platforms. 2025 is a year of peak investments for RNAIPL with the launch of new vehicles costing around €200 million.
Renault Group and Nissan will also continue to operate jointly Renault Nissan Technology & Business Centre India (RNTBCI) with Nissan retaining its 49%-stake.
“We remain committed to the Indian market, delivering vehicles tailored to local consumer needs while ensuring top-notch sales and service for our existing and future customers. India will remain a hub for our research and development, digital and other knowledge services. Our plans for new SUVs in the India market remain intact, and we will continue our vehicle exports to other markets,” said Ivan Espinosa, the new President and CEO of Nissan
Renault, through its electrification subsidiary Ampere, will also develop and produce a derivative of its small electric Twingo for Nissan from 2026. This model will be designed by Nissan.
Nissan has also been released from its commitment to invest in Ampere, which had a planned share offering cancelled back in January 2024.
The two also reduced their cross holdings of shares from 15% to 10%, which will help simplify and deal with Honda.
“As a long-time partner of Nissan within the Alliance and as its main shareholder, Renault Group has a strong interest in seeing Nissan turnaround its performance as quickly as possible,” said said Luca de Meo, CEO of Renault Group.
“Pragmatism and business-oriented mindset were at the core of our discussions to identify the most effective ways of supporting their recovery plan while developing value-creating business opportunities for Renault Group. This Framework Agreement, beneficial for both parties, is the proof of the agile and efficient mindset of the new Alliance. It also confirms the attractiveness of our products with Twingo as well as our ambition to grow our business on international markets. India is a key automotive market and Renault Group will put in place an efficient industrial footprint and ecosystem.”
“Nissan is committed to preserving the value and benefits of our strategic partnership within the Alliance while implementing turnaround measures to enhance efficiencies,” said said Ivan Espinosa, the new President and CEO of Nissan.
“Our goal is to create a more agile and effective business model that allows us to respond quickly to changing market conditions and conserve cash for future investments.
www.nissan.com; www.renaultgroup.com
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