Renault Group will acquire the remaining 51% stake in Renault Nissan Automotive India Private Ltd (RNAIPL) from Nissan, bringing its total ownership to 100%. The acquisition, expected to be completed by mid-2025, will allow Renault to expand its manufacturing operations in India while continuing to produce Nissan vehicles, including the New Nissan Magnite.
Despite exiting ownership of the manufacturing joint venture, Nissan has outlined an ambitious expansion plan for India. The company plans to invest EUR 700 million and introduce six new models by 2026, including two C-segment SUVs, a B-segment SUV, an electric vehicle, and new variants of the Magnite. Nissan aims to double its sales volume in India to 200,000 units by 2026. In FY2025, Nissan sold 99,000 units, including 71,000 exports and 28,000 domestic sales, largely driven by the Magnite.
Frank Torres, Divisional Vice President of AMIEO Region Business Transformation & President of Nissan India Operations, stated, “We are on track. Our investments are intact, our network is growing, and our future models are aligning with our aspiration to triple our volumes.”
Under the new arrangement, Renault will manufacture all Nissan vehicles under a contract model, reversing the previous structure in which Nissan held a majority stake in RNAIPL. Nissan sees this shift as a way to convert fixed costs into variable costs, freeing up capital for future investments. “We will now pay per vehicle. It gives flexibility and allows us to free up cash for future investments,” Torres said.
However, the change also means Nissan no longer has direct control over production capacity, operational decisions, or workforce management. Renault will now make all manufacturing-related decisions, including capacity expansion and production allocation between Renault and Nissan models. Torres stated that Nissan has secured production capacity for its planned models through 2032 but acknowledged that any future expansion would require mutual agreement. “From now on, RNAIPL is a supplier to Nissan,” he said.
Nissan will retain its 49% stake in the Renault Nissan Technology & Business Center India (RNTBCI), which will continue to support research and development for India-focused and global models. Employment levels at RNAIPL, currently around 6,300 workers, will remain unchanged in the near term.
Additionally, Renault and Nissan have updated their alliance agreement, reducing the lock-up requirement for their cross-shareholdings from 15% to 10%. Nissan has also opted out of its commitment to invest in Ampere, a Renault Group subsidiary focused on electric vehicles. These changes are expected to be finalized by the end of May 2025.
While Nissan maintains that the restructuring supports its turnaround plan by improving financial flexibility, industry analysts note that dependence on a partner-controlled factory could pose strategic risks in India’s competitive and cost-sensitive market. Torres expressed confidence in the company’s future strategy, stating, “The results we’ve seen this year confirm that our investment in India is paying off. Our plans remain unchanged.”