Alliance partners rejig their JV stake to 51:49 with Nissan holding the majority.
In a bid to make a comeback in the main stream market, Renault Nissan alliance has committed a fresh investment of Rs 5300 crore in the Indian market which will bring out six models in the country including two electric vehicles.
The alliance has announced a new long-term vision for the country, which aims at increasing production and R&D activities, introducing electric vehicles, and transitioning to carbon-neutral manufacturing, the company said in a statement.
From their base in Chennai, the companies will collaborate on six new production vehicles for domestic and international customers, including two new fully electric vehicles, uplifting the Renault-Nissan centre into an international export hub, the alliance informed.
As a consequence of the renewed commitment of both companies to the Indian market, Renault and Nissan are realigning their shareholding in their joint operations.
Under the new framework agreement, Renault Nissan Automotive India Private Ltd (RNAIPL) will move to an ownership of 51% Nissan – 49% Renault, as against the previous 70:30 equity holding. And the Renault Nissan Technology Business Centre (RNTBCI) will move to an ownership of 51% Renault -49% Nissan. This reinforces the partnership for the long-term and will empower the joint ventures with more responsibility and more autonomy, said the company.
The six new models will comprise of three for each company, engineered and built in Chennai. They will be built on common Alliance 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.
An initial investment of around $600m USD / ₹5300 crores is planned to support the new projects, which will see an up to 2,000 additional new jobs created at the Renault Nissan Technology & Business Centre in Chennai. At the same time, the RNAIPL factory will become carbon-neutral with a significant increase in renewable energy generation.” Statement from the company added.
The new models will not only cater to Indian market but will cater to overseas markets from India, boosting plant utilisation to 80% and securing many thousands of jobs at the RNAIPL plant in Chennai for many years to come, the Franco-Japanese alliance informed.
The future for Renault and Nissan’s Indian operations was outlined on Monday at an official ceremony in Chennai by Nissan’s Director, Chief Operating Officer, Representative Executive Officer and member of Alliance Board Ashwani Gupta, alongside officials from the Tamil Nadu Government.
Guillaume Cartier, Chairperson for Nissan’s Africa, Middle-East, India, Europe and Oceania region, said: “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. “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.”
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 thousand vehicles sold per year. India has also a key role in our R&D worldwide footprint. This project together with Nissan is a first concrete output of the new Alliance ambition released on February 6th.”
Complementing the additional production will be an increase in R&D and associated activities at the Renault Nissan Technology & Business Centre India, which is expected to create up to 2,000 new jobs at the site near Chennai, focusing on new Indian and international projects.
Roadmap to carbon neutral vehicle manufacturing
The RNAIPL plant, already one of the Alliance’s leading centres for energy and resource reduction, also is announcing its roadmap to carbon neutrality. This will be achieved by 2045, through an ongoing programme to transition to 100% renewable energy, while reducing energy consumption at the plant by 50% compared to today.
Chennai Plant already sources more than 50% of its electricity from renewables, including solar, biomass and wind. The existing solar plant will become more than six times bigger, expanding to a 14MW plant from 2.2MW today.