Renault Group is set to acquire the remaining 51% stake in Renault Nissan Automotive India Private Ltd (RNAIPL) from Nissan, making it a fully owned subsidiary. This acquisition is a key strategic move for Renault to expand its international footprint. Despite the acquisition, Nissan will maintain a strong presence in India, focusing on expanding its market coverage. RNAIPL will continue to produce Nissan models, including the new Nissan Magnite, and play a crucial role in Nissan’s future growth plans.
In a related development, Nissan has chosen Renault Group to develop and produce a derivative of the Twingo, designed by Nissan, further strengthening their collaboration. As part of the restructuring, the New Alliance Agreement will be amended to provide both companies with increased flexibility in their cross-shareholdings, with the lock-up commitment reduced from 15% to 10%.
Additionally, Nissan will be released from its investment commitment to Ampere, though it will continue to support the agreed product projects. Renault Group and Nissan also entered into a Share Purchase Agreement for Renault to acquire Nissan’s 51% stake in RNAIPL, as well as an Operational Agreement to maintain and define their future cooperation in India.
This transaction, which is expected to complete by the end of H1 2025, is subject to regulatory approval. Following the completion, Renault Group will fully consolidate RNAIPL into its financial statements. The Chennai-based RNAIPL plant, with a production capacity exceeding 400,000 units, is set to benefit from the launch of new models, including the CMF-B platform next year.
Renault Group has also set a free cash flow guidance of at least €2 billion for 2025, factoring in the expected €200 million cash flow impact from this transaction. In line with its “2027 International Game Plan,” Renault Group will accelerate its development in India.
Nissan will also join the Twingo project for Europe, with Renault Group, through Ampere, producing a derivative of the Twingo from 2026. The agreement amendments, including the termination of Nissan’s Ampere investment commitment, are expected to be finalized by the end of May 2025, with other key terms of the Alliance Agreement remaining unchanged.
“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. 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,” commented Luca de Meo, CEO of Renault Group.
“Nissan is committed to preserving the value and benefits of our strategic partnership within the Alliance while implementing turnaround measures to enhance efficiencies. Our goal is to create a more agile and effective business model that allows us to respond quickly to changing market conditions and conserve cash for future investments.
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,” said Ivan Espinosa, President and CEO of Nissan
