Renault Group to buy out Renault Nissan Automotive India Private Limited

Renault Group and Nissan have announced changes in their joint venture, RNAIPL. These changes affect their alliance and aim to expand their business operations in India and abroad. Under the changes, Renault will take charge of Indian operations while still supplying cars to Nissan. The plans also include the production of new models and exports.

Renault Group acquires full ownership of RNAIPL

After this agreement, Renault Group will own a 100 per cent stake in Renault Nissan Automotive India Private Ltd (RNAIPL) after acquiring the 51 per cent stake currently owned by Nissan. This move is set to enhance Renault’s international business while Nissan continues to maintain its market presence in India.

Renault Group and Nissan continue joint operations in India

An operational agreement between Renault and Nissan will ensure the uninterrupted supply of cars and parts to Nissan in India. Production of models like the Magnite will continue, while Nissan will use RNAIPL for expansion in India and export. Renault’s ‘2027 International Game Plan’ will boost production at the RNAIPL plant in Chennai and will introduce the CMF-B platform next year, with four new models set to be launched in India. The operations of Renault Nissan Technology & Business Center India (RNTBCI) will continue as they were, with Renault Group retaining its 51 per cent stake and Nissan its 49 per cent stake.

Nissan partners with Renault for a new Twingo derivative

Renault Group, through Ampere (which designs, engineers, manufactures and markets electric passenger cars under the Renault brand in Europe), will develop and manufacture a Nissan-designed derivative of the Twingo EV vehicle for the European market. The Twingo EV is an A-segment car that is based on the original Twingo for city runabouts and is claimed to be launching in Europe in 2026. According to claims, it will have a range of up to 298km and will cost under £17,000 (₹18.8 lakh, excluding Indian taxes and duties).

Amendment to the New Alliance Agreement

The Renault-Nissan Alliance Agreement has been revised to increase flexibility regarding cross-shareholdings. The lock-up undertaking for both parties has been reduced from 15 per cent to 10 per cent, allowing each company the option, though not the obligation, to lower their shareholding to this minimum threshold. Parallely, Nissan is released from its commitment to invest in Ampere, subject to a few conditions.

Conclusion

This restructuring of RNAIPL puts Renault now firmly in charge of operations, production and future products for the Indian market. It is unlikely that current Nissan owners will be affected by this, but it will be interesting to see where this move takes the two brands in the next few years.