In a major realignment of their long-standing partnership, Renault Group and Nissan announced a series of strategic moves that will reshape their collaboration, particularly in India. As part of the newly signed Framework Agreement, Renault Group will acquire the remaining 51% stake in Renault Nissan Automotive India Private Ltd (RNAIPL) currently held by Nissan, taking full ownership of the joint venture.
The acquisition of RNAIPL and its 400,000+ unit annual production capacity in Chennai provides Renault with a robust industrial base backed by a competitive supplier ecosystem. The facility currently produces vehicles based on the CMF-A and CMF-A+ platforms, and will soon begin production of the CMF-B platform, starting with four new models from 2026.
Nissan, while divesting its stake in RNAIPL, will continue to leverage the facility for production and exports, especially the New Nissan Magnite, reaffirming India as a critical market and global manufacturing hub under its “One Car, One World” strategy. Nissan also confirmed it will maintain operations at the Renault Nissan Technology & Business Center India (RNTBCI), where it retains a 49% stake, with Renault holding the remaining 51%.
Luca de Meo, CEO of Renault Group, described the development as a landmark moment: “This Framework Agreement reflects our shared goal of agility and business growth. India is key to our international expansion, and with full control of RNAIPL, we will strengthen our industrial footprint and unlock more opportunities through new platforms and product launches.”
As part of this broader strategic pivot, Renault Group will also develop and manufacture a new derivative of the Twingo for Nissan in Europe. The A-segment vehicle, set to launch in 2026, will be designed by Nissan and produced by Ampere, Renault’s European EV entity. This move confirms Ampere’s role in accelerating cost-effective EV development, while allowing Nissan to bring a new model to market without direct investment in Ampere.
Simultaneously, the companies have amended their New Alliance Agreement to provide greater flexibility in their cross-shareholdings. The lock-up undertaking for each party has been lowered from 15% to 10%, enabling both Renault and Nissan to reduce their respective stakes if desired, subject to a coordinated and orderly process. However, Renault’s 18.66% stake in Nissan, held in a French trust, remains unaffected.
Nissan will also be released from its previously announced commitment to invest in Ampere, leading to the termination of the investment agreement signed in July 2023. This allows Nissan to conserve capital while continuing to focus on its turnaround and market growth strategies.
Ivan Espinosa, President and CEO of Nissan, reaffirmed the company’s commitment to India: “We are focused on enhancing efficiency and agility in our operations while delivering on our product roadmap. India remains a key R&D and digital hub for us, and our commitment to new SUVs and exports from India is unwavering.”
The completion of the RNAIPL acquisition is expected by the end of H1 2025, subject to regulatory approvals. The transaction will result in RNAIPL being fully consolidated into Renault Group’s financials, with a cash flow impact of approximately €200 million. Despite this, Renault has reaffirmed its 2025 guidance of free cash flow ≥ €2 billion, along with its operating margin targets, supported by cost offsets and strategic planning.
The revised alliance dynamics demonstrate a new level of pragmatism and commercial focus between the two companies—one that supports independence while preserving synergies in key markets and technologies. For both Renault and Nissan, this restructured partnership represents a step toward greater agility, regional autonomy, and a more targeted global strategy.
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