Renault Group to take over Nissan Motor's 51% stake in Chennai plant

French major Renault Group is set to take full control of Renault Nissan Automotive India (RNAIPL) after agreeing to acquire Japanese carmaker Nissan Motor’s 51 per cent stake in the Chennai-based joint venture. Renault already holds the remaining 49 per cent.

 

The deal is part of Nissan’s broader turnaround strategy.

 

Though the companies declined to disclose financial details of the deal, Nissan will continue using RNAIPL as a key sourcing hub for its vehicles, including the Magnite, for both India and export markets.

 

The transaction, pending regulatory approvals, is expected to close by the end of the first half of 2025. Nissan asserted that it has no plans to exit India.

 

“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,” said Ivan Espinosa, president and chief executive officer of Nissan. “Our plans for new SUVs in the Indian market remain intact, and we will continue our vehicle exports to other markets under the ‘One Car, One World’ business strategy for India.”

 

Frank Torres, Nissan India president and AMIEO (Africa, Middle East, India, Europe and Oceania) regional business transformation head, said the company remains focused on profitability. “We are guaranteeing the same efficiency we had with 51 per cent in the unit. The turnaround is to ensure that our break-even in terms of sales is profitable. We have no other way to reduce our fixed costs and adjust,” he said.

 

Nissan has secured future production capacity and is exploring contract manufacturing opportunities with other automakers, he revealed, adding, "there are no restrictions—we can evaluate any of the possibilities in India."

 

Nissan, which produced 99,000 units at the Chennai plant in FY24 — 28,000 for sales in India and 71,000 for exports — aims to ramp up to 100,000 units for each by 2026. It has already committed €700 million for new model launches and dealership expansion, with 80 per cent of the investment deployed. Torres said the deal would not affect the plant’s 4,958 permanent employees or 1,600 contract workers.

 

“As a long-time partner of Nissan within the alliance and as its main shareholder, Renault Group has a strong interest in seeing Nissan turn around its performance as quickly as possible,” said Luca de Meo, chief executive officer of Renault Group. “Pragmatism and a 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.”

 

Despite Nissan’s exit from RNAIPL, both automakers will continue their partnership at Renault Nissan Technology and Business Centre India (RNTBCI), where Nissan retains a 49 per cent stake. Renault Group, as part of its “2027 International Game Plan,” is accelerating its India expansion. The Chennai plant, with a 400,000-unit annual capacity, benefits from a strong supplier network and currently produces models on CMF-A and CMF-A+ platforms. Renault plans to introduce the CMF-B platform next year, starting with four new models.

 

Nissan has been executing a global turnaround strategy since November, cutting 9,000 jobs and reducing production capacity by 20 per cent. It also slashed its profit forecast by 70 per cent, citing weak sales in China and the US. A potential $60 billion merger talks with Honda collapsed in February over disputes, including Renault’s stake in Nissan.

 

Major hub 

 

> 400,000 units annual capacity of Chennai-based plant operated by Renault Nissan Automotive India Pvt Ltd (RNAIPL)

> 51:49 stakes in per cent currently held by Nissan and Renault, respectively, in RNAIPL

> 2.75 mn vehicles produced by both companies there since 2010 (until October 2024)

> 65 countries where both firms export cars from the Chennai unit

> 99,000 units Nissan produced at the unit in FY24 — 28,000 for Indian market; 71,000 for exports

> 4,958 permanent employees are at the unit, besides 1,600 contract workers