French automobile company Renault announced on Monday that it is buying Nissan's stake in its Indian joint venture Renault Nissan Automotive India Private Limited (RNAIPL).
As a result of the deal, Renault Group will acquire 100% ownership by purchasing the 51% stake currently held by Nissan. However, financial details of the transaction were not disclosed.
Renault and Nissan have already reached an agreement on the share purchase. Under the terms of the agreement, Renault and Nissan will continue to work together and will jointly own the Renault Nissan Technology and Business Centre India (RNTBCI), where Nissan will own 49% and Renault 51%.
Under the agreement, Nissan will continue to use RNAIPL to manufacture vehicles for the Indian and international markets. It will also continue to produce other models, including the new Nissan Magnite.
Renault will develop and produce a version of the Twingo car from 2026, designed by Nissan, through Ampere. This will provide a major opportunity for Renault to increase its global markets.
Luca de Meo, Renault Group's CEO, stated in this regard
"It has been a traditional partner of Nissan and wishes the company to develop as soon as possible. We were primarily keen to seek mutually favorable terms for the two and develop new opportunities for business."
Nissan's new President and CEO Ivan Espinosa said,
"We are committed to the Indian market, and will introduce new SUV models according to the needs of local customers. In addition, India will be one of our centers for research and development, digital services and other knowledge-based activities."
2025 is going to be a major investment year for RNAIPL, with plans to launch new cars. Once the transaction is completed, RNAIPL will be fully included in the financial statements of Renault Group.
