Renault weighs in on Honda-Nissan planned merger. What happens to existing alliance?

Honda, Nissan, and Mitsubishi announced a proposed merger recently, a landmark move that could see the fortunes of these Japanese automakers change in a fast-evolving world. The move has got the industry talking and now weighing in its opinion on this planned merger is Nissan’s largest shareholder, Renault, which recently issued a statement. What could the merger mean for the Renault-Nissan Alliance? Here’s what the company had to say.

Renault’s Response to Honda-Nissan Merger

Renault took a cautious approach towards the proposed merger announcing it is considering all options at the moment. In a statement, the French auto giant said, “Renault Group acknowledges the announcements made today by Nissan and Honda, which are still at an early stage. As the main shareholder of Nissan, Renault Group will consider all options based on the best interest of the Group and its stakeholders. Renault Group continues to execute its strategy and to roll-out projects that create value for the Group, including projects already launched within the Alliance."

Renault holds a direct 17 per cent stake in Nissan and an additional 18.7 per cent stake through a French trust. However, the automaker was confirmed to not be a part of the merger between the Japanese players. This is the first such major tie-up for Honda, while Nissan has been operating for decades in association with Renault in several global markets including India.

The statement gives little detail about Renault’s involvement in the planned merger, nor does it shed light on what happens to the existing Renault-Nissan-Mitsubishi alliance. Speculations suggest that Renault would be interested in retaining its share in Nissan without directly being involved. That said, the automaker could also sell its stake in Nissan to Honda to make the merger more seamless.

Renault-Nissan Alliance in India

The Renault-Nissan Alliance has been instrumental as far as India operations are concerned. Both automakers share a massive manufacturing facility in Oragadam, Tamil Nadu, which rolls out their respective made-in-India cars. For Renault, it’s the Kwid, Triber, and Kiger, while Nissan produces the Magnite at this facility. All models are exported from India to global markets. It also needs to be seen how the planned merger will affect Honda and Nissan’s future lineup of cars. At present, Renault and Nissan have announced midsize SUVs for the Indian market set to arrive in late 2025. The models will be built at the alliance plant in the country.

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