Renault Group and Nissan enter major new strategic projects
To strengthen their alliance
The Renault Group and Nissan have unveiled major new strategic projects to improve their longstanding partnership and enhance their respective market positions.
The announcement highlights key business initiatives, including a major acquisition by Renault Group and a renewed commitment to the Indian market. It also includes a restructured alliance agreement that offers greater flexibility for both companies.
The deal centres around Renault Group’s acquisition of Nissan’s 51% shareholding in Renault Nissan Automotive India Private Ltd (RNAIPL).
As a result, Renault Group will take full ownership of the India-based joint venture, reinforcing its presence in the rapidly growing Indian automotive market. Nissan will continue to operate in India, focusing on expanding its market coverage while leveraging RNAIPL’s manufacturing capacity to produce key models, such as the new Nissan Magnite compact SUV.
Renault Group’s CEO, Luca de Meo, underscored the acquisition’s strategic importance, stating that it is a vital step in the company’s international expansion efforts.
“India is a key automotive market, and Renault Group will put an efficient industrial footprint and ecosystem in place. This framework agreement, which benefits both parties, highlights our ambition to grow our business globally while ensuring Nissan’s recovery,” de Meo said.
The move will also enable the Renault Group to tap into India’s robust supplier ecosystem, supported by RNAIPL’s production capacity of over 400,000 units.
As part of the deal, the framework agreement outlines Renault Group’s continued commitment to the Indian market, focusing on expanding production capabilities at RNAIPL. Based in Chennai, the plant will start production of the new CMF-B platform in 2026, with four new models slated for launch. Renault has also reaffirmed its 2025 full-year guidance, with an expected free cash flow of at least €2 billion, even as it assumes responsibility for RNAIPL’s operations.
Twingo focus
In another key development, Nissan has selected Renault Group to develop a derivative of the Twingo model, which Nissan will design. The new vehicle, designed for the European market, will be manufactured through Renault’s Ampere division, which specialises in electric vehicles.
This move underscores the collaboration between the two companies in the electric mobility sector and confirms Renault’s expertise in reducing development costs and time for new models. Production of this Twingo derivative will begin in 2026.
The strategic shift also includes an amendment to the new alliance agreement, which governs the cross-shareholding arrangements between the two companies. The revised agreement will reduce the lock-up period for both parties from 15% to 10%, offering more flexibility in shareholding and potential future changes in ownership. However, the companies have agreed that any sale of shares will follow a coordinated process, with a right of first offer for the other company or a designated third party.
Furthermore, Nissan will be released from its obligation to invest in Renault’s Ampere division, though it will continue participating in agreed product projects. The investment agreement, which was initially signed in 2023, will be terminated once certain conditions are met, with the changes expected to be finalised by the end of May 2025.
Nissan’s President and CEO, Ivan Espinosa, expressed confidence in the new strategic direction.
“Our goal is to create a more agile and effective business model that allows us to respond quickly to changing market conditions. We remain committed to the Indian market and will continue to deliver vehicles tailored to local consumer needs,” Espinosa said.
He emphasised that India will remain a key hub for Nissan’s research, development, and digital services.
The announcement comes as both companies seek to further solidify their positions in the competitive automotive industry. The Renault Group is focusing on expanding its international footprint, and Nissan is continuing to enhance its efficiency and market agility. The acquisition of RNAIPL and the renewal of the alliance agreement are expected to pave the way for a stronger, more collaborative future between the two automotive giants.
This transaction is still subject to regulatory approvals, and completion is expected by the end of the first half of 2025. The move aligns with Renault Group’s ‘2027 International Game Plan’ and will play a crucial role in the company’s ongoing efforts to strengthen its presence in emerging markets.
Image: Nissan will rely on RNAPIL to produce key models in India, such as the new Nissan Magnite compact SUV. Credit: Nissan
