Nissan, Renault To Invest Rs 5,300 Cr In India To Make 6 New Models

Nissan Motor Co and Renault SA, the automakers that revamped their global alliance last week, on Monday said they would invest Rs 5,300 crore in India to launch six models, including two electric vehicles (EV).

The companies announced a new long-term plan for India that will increase production, scale up research and development and shift to carbon-neutral manufacturing. The Renault Nissan alliance will use their base in Chennai to make the six vehicles for domestic and international customers.

The two companies said that each would make three new models on joint platforms while retaining the individual, distinctive styling of the respective brands. “They will include four new C-segment SUVs. Two new A-segment electric vehicles will be the first EVs for both Renault and Nissan in India, building on the heritage and expertise of both brands in mass-market electrification, which began with the Nissan LEAF and Renault Zoe more than a decade ago,” they said in a statement.

Ashwani Gupta, chief operating officer of Nissan Motor Corporation, said the company is targeting a higher market share in India. The two companies produce four models at the Chennai plant in Oragadam.

The new models will signal a significant increase in exports from India, boosting the Chennai’s plant utilisation to 80 per cent from 49 per cent. Nissan said it didn’t plan expanding capacity at the Chennai plant for now.

As part of the deal announced in London last week, Renault will decrease its stake in Nissan and plan a variety of new models alongside junior alliance associate Mitsubishi Motors. "Renault and Nissan are fully committed to the Indian market, committed to electrifying the Indian market and committed to minimising our impact on the environment,” said Guillaume Cartier, chairperson for Nissan’s Africa, Middle East, India, Europe and Oceania region.

Renault and Nissan are changing shareholding in their joint operations in the Indian market. Under a new framework agreement, Renault Nissan Automotive India Private Ltd (RNAIPL) will move to an ownership of 51 per cent by and 49 per cent by Renault, as against the previous 70:30 equity holding. Renault Nissan Technology Business Centre (RNTBCI) will move to an ownership of 51 per cent by Renault and 49 per cent by Nissan.

“India was the first alliance plant and India will be at the centre of this new chapter of the Alliance, with new vehicles, new R&D activities and new export markets taking our joint operations to the next level. For the first time, the Nissan line-up in India will reflect our global power in high-quality SUVs and EVs, bringing greater value to our employees, customers and communities,” Cartier said

To complement plans for additional production, the alliance will increase research and development at the Renault Nissan Technology and Business Centre India. The R&D activity is expected to create up to 2,000 new jobs at the site near Chennai, focusing on new Indian and international projects.

The RNAIPL plant, one of the alliance’s leading centres for energy and resource reduction, announced its roadmap to carbon neutrality. This will be achieved by 2045, through an ongoing programme to transition to 100 per cent renewable energy, while reducing energy consumption at the plant by 50 per cent compared to today. The Chennai plant sources more than 50 per cent of its electricity from renewables.

François Provost, International Development & Partnerships Renault Group and Managing Director of Alliance Purchasing Organization, said: “India is a key market for Renault Group. Over the past 14 years, we have been developing the Renault Brand with our teams and dealers, up to reaching 100,000 vehicles sold per year. India has also a key role in our R&D worldwide footprint. This project together with Nissan is the first concrete output of the new Alliance ambition released on February 6.”