New Delhi, March 31 French carmaker Renault Group announced on Monday that it would acquire the remaining 51 per cent stake in Renault Nissan Automotive India Private Ltd (RNAIPL), currently held by Nissan Motor Corp, to become the sole owner of the company.
However, Japanese car-maker Nissan will maintain its presence in India with a strong focus on increasing market coverage. “RNAIPL would continue to produce Nissan models, including the New Nissan Magnite, and will serve as a crucial pillar for the company's future expansion plans,” the company said in a statement.
The Chennai plant, with a capacity exceeding 400,000 units, will also help Renault Group to strengthen its presence in India, under the French carmaker's '2027 International Game Plan'. Renault plans to introduce the CMF-B platform at the Chennai plant in 2026, starting with four new models.
Nissan will be released from its commitment to invest in Ampere, terminating the investment agreement signed in July 2023.
Renault Group CEO Luca de Meo said that 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”.
“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,” he added.
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,” Luca de Meo noted.
Despite ceding its shareholding in RNAIPL, Nissan will maintain a strong presence in India, focusing on expanding market coverage, the company said in its official release. The Chennai-based RNAIPL facility will continue producing Nissan models, including the new Nissan Magnite, playing a crucial role in the company’s growth plans.
“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 under the 'One Car, One World' business strategy for India," President and CEO of Nissan, Ivan Espinosa, said.
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor