Oops, something went wrong Nissan Motor Corporation and Renault Group jointly announced that they are restructuring their alliance, with the Japanese automaker agreeing to sell its 51% stake in their Indian joint venture, Renault Nissan Automotive India Private Ltd (RNAIPL), to its French partner. The transaction is scheduled to be completed by the end of the second quarter of 2025, increasing Renault’s stake to 100% and freeing up much-needed cash for Nissan. The Japanese automaker confirmed that RNAIPL will continue to produce Nissan models at the plant in Chennai, including the New Nissan Magnite, and that the plant will continue to “serve as a crucial pillar for the company's future expansion plans,” adding that “Nissan will maintain its presence in India with a strong focus on increasing market coverage.” Nissan pointed out that the sale of its majority stake in RNAIPL represents a major opportunity for Renault to expand its international business, as part of its “2027 International Game Plan” in which the French automaker revealed plans to accelerate its expansion in India. The Chennai plant has a production capacity of over 400,000 vehicles per year and currently produces models based on the jointly developed CMF-A and CMF-A+ (Common Module Family) platforms, with plans to introduce the CMF-B platform in 2026 along with four new models. With 2025 expected to be a peak year for investment for RNAIPL, the sale of its 51% stake before the end of the first half of the year is expected to generate €200 million in free cash flow for Nissan. The two companies plan to continue to operate their Renault Nissan Technology & Business Center India (RNTBCI) joint venture, in which Nissan has a 49% stake and Renault Group a 51% stake. They also plan to continue their current joint projects and to maintain their relationship in India, with Nissan continuing to source products from RNAIPL for sale locally and for export. The two companies also confirmed that Renault will develop and produce a derivative of its Twingo small car, which Nissan will help design and sell under its own brand. The two companies plan to amend their New Alliance Agreement “to increase the flexibility of each party regarding their cross-shareholdings, by setting the lock-up undertaking at 10% instead of 15% currently.” This entitles both Renault and Nissan, with no obligation, to lower their respective shareholdings to a minimum of 10%. Nissan has also been released from its commitment to investing in Renault’s Ampere battery electric vehicle (BEV) company, with the agreement signed in 2023 to be terminated. Ivan Espinosa, President and CEO of Nissan, said in a statement:“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.” He added that Renault remains “committed to the Indian market” and that “India will remain a hub for 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." Luca de Meo, CEO of Renault Group, pointed out:“As a long-time partner of Nissan within the Alliance and as its main shareholder, Renault Group has a strong interest in seeing Nissan turn around its performance as quickly as possible. Pragmatism and a 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.” "Nissan sells its Indian plant to Renault to raise cash" was originally created and published by Just Auto, a GlobalData owned brand.   The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio