Renault buys Nissan's 51% stake in India joint venture, takes full control of operations

Renault Group on Monday said that it would acquire the remaining 51 per cent shareholding in the Renault-Nissan Automotive India Private Ltd (RNAIPL). The majority stake in the RNAIPL is currently held by Nissan Motor Corp. Purchasing this stake will allow Renault to take complete ownership of the Renault-Nissan Alliance's manufacturing plant in India.

Located in Chennai, RNAIPL's plant operations commenced back in 2010, with Renault and Nissan holding a 30 per cent and 70 per cent stake, respectively. Later, as part of a deal signed in 2023, between the two French and Japanese car manufacturers, Nissan's stake was reduced to 51 per cent. Under this deal, both auto majors agreed to jointly invest $600 million to make six new passenger vehicles in the country.

The two auto majors have now agreed to further loosen their long-term alliance, paving the way for more share sales as the Japanese automaker remains under pressure to shore up its finances, reported Bloomberg. The carmakers will be able to reduce their cross-ownership to no less than 10 per cent, from 15 per cent previously, The French automaker said. Besides taking over the alliance's India joint venture, Renault will produce a small electric car for Nissan from next year.

Interestingly, the agreement was announced just a day before Ivan Espinosa took charge as the new Nissan CEO on April 1, replacing Makoto Uchida after a potential tie-up with rival Honda Motor Co. collapsed.

Renault is still Nissan’s biggest shareholder with a 36 per cent stake. However, the OEM has been partially unwinding the partnership amid mounting rivalries and mutual suspicion. Nissan, meanwhile, is under pressure to refresh its outdated product lineup and navigate the upheaval caused by Donald Trump’s latest tariff push.

With the new agreement, Nissan will be released from an earlier commitment to invest in Renault’s electric vehicle business Ampere. Ampere will develop and produce a Nissan-designed vehicle based on Renault’s Twingo model from 2026.

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