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Renault Group will take full control of the Indian manufacturing operations under its joint venture with Japanese automaker Nissan, even as both companies will continue to serve the market under their respective brand names going forward.
Renault will acquire the 51% stake in the manufacturing operations currently held by Nissan. Nissan will continue to use the manufacturing infrastructure under the current JV, Renault Nissan Automotive India Private Ltd (RNAIPL), even after exiting it.
The move marks a significant step in Renault’s international expansion strategy and is part of a broader set of announcements that redefine the Renault-Nissan Alliance.
“This project represents a key opportunity for Renault to expand its international business,” said Luca de Meo, CEO of Renault Group. India is a key automotive market, and the Renault Group will establish an efficient industrial footprint and ecosystem. The transaction, expected to close by the end of the first half of 2025, will see RNAIPL become a wholly owned subsidiary of Renault.
Renault confirmed that RNAIPL would be consolidated 100% into its financials. Despite a projected €200 million free cash flow impact this year, the Group reaffirmed its full-year guidance of ≥€2 billion in free cash flow and confirmed its operating margin targets.
Nissan, meanwhile, will retain a strong presence in India and continue to utilize RNAIPL for both domestic and export production.
“We remain committed to the Indian market, delivering vehicles tailored to local consumer needs while ensuring top-notch sales and service,” said Ivan Espinosa, President and CEO of Nissan.“India will remain a hub for our research and development, digital and other knowledge services.”
Both companies will continue to operate Renault Nissan Technology & Business Center India (RNTBCI) under their existing 51:49 shareholding structure.
Renault plans to accelerate product development from its Chennai facility—home to CMF-A and CMF-A+ platforms—by introducing the CMF-B platform next year, starting with four new models. The announcement was part of a larger Framework Agreement signed by the two companies, which also includes a new product collaboration and amendments to the Alliance’s cross-shareholding terms.
From 2026, Renault, via its EV arm, Ampere, will develop and manufacture a new A-segment vehicle for Nissan derived from the upcoming Renault Twingo. “It also confirms the attractiveness of our products with Twingo as well as our ambition to grow our business on international markets,” said de Meo. The companies also agreed to amend the New Alliance Agreement, reducing the lock-up commitment on cross-shareholdings from 15% to 10%, thereby providing both parties with greater flexibility in managing their equity stakes.
However, any potential sale of shares would still need to follow a coordinated and orderly process, with the other company’s right of first offer. As part of the same amendment, Nissan will be released from its commitment to invest in the Ampere. The investment agreement signed in July 2023 will be terminated, subject to certain conditions expected to be met by May 31, 2025.
“Nissan is committed to preserving the value and benefits of our strategic partnership within the Alliance while implementing turnaround measures to enhance efficiencies,” Espinosa said. Our goal is to develop a more agile and effective business model that enables us to respond quickly to changing market conditions and conserve cash for future growth and investment opportunities.
Similarly, De Meo said, “Pragmatism and a business-oriented mindset were at the core of our discussions, which aimed to identify the most effective ways of supporting their recovery plan while developing value-creating business opportunities for the Renault Group.”
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