After more than twenty years of close collaboration, Renault and Nissan are entering a new chapter—one defined by greater autonomy, regional focus, and a rebalancing of power. The two automotive giants announced a strategic shift that reshapes their long-standing partnership, beginning with major changes to their operations in India and Europe.
Renault is set to take full control of Renault Nissan Automotive India Private Ltd (RNAIPL) by acquiring the 51% stake previously owned by Nissan. This move marks a significant step in Renault’s strategy to accelerate its international expansion, with India now positioned as a key industrial hub for the French automaker.
Renault Group CEO Luca de Meo emphasized the strategic importance of this shift, calling India “a crucial market for the automotive industry.” He outlined plans to build a robust manufacturing ecosystem there, anchored by the Chennai plant, which currently has the capacity to produce over 400,000 vehicles annually. Starting in 2026, the site will launch production of vehicles built on the new CMF-B platform, with four all-new models set to roll off the line.
But Nissan isn’t pulling out of India. The Japanese carmaker will retain a strong presence in the region through continued SUV projects, exports, and a 49% stake in the companies’ joint research and development center (RNTBCI). Ivan Espinosa, who will become Nissan’s CEO on April 1, reiterated India’s value to the brand, calling it “a key hub for our R&D and digital services teams.”
Another headline-making development: Renault’s EV subsidiary Ampere will produce a new fully electric, compact city car for Nissan based on the Twingo. Scheduled for launch in Europe in 2026, the model will be engineered by Nissan but manufactured by Ampere. While Nissan is gradually reducing its financial ties to Ampere, this collaboration underscores the continuing technical strength of the Alliance.
The underlying message is clear—more flexibility, less structural entanglement. Nissan has now formally stepped back from its investment obligations in Ampere, signaling a transition to a more tailored, project-based form of partnership.
This shift also includes an overhaul of the Alliance’s foundational agreement. Both companies now have the option to reduce their cross-shareholdings to 10%—down from the previous threshold of 15%—though they’re not required to do so. The new structure offers more operational freedom while preserving a foundation of mutual trust.
One key element remains unchanged: Renault still holds an 18.66% stake in Nissan through a French trust. Any decision to divest these shares would require a coordinated process, ensuring the long-term stability of the partnership.
Looking ahead, Renault has committed to ramping up investments in RNAIPL, with 2025 set as a peak year. The expected impact on free cash flow is around €200 million, but the company remains confident in its financial outlook, maintaining its target of at least €2 billion in free cash flow for the year.
Full ownership of RNAIPL will give Renault tighter control over production and logistics in one of the most competitive automotive markets in the world. As the company doubles down on India and reshapes its European collaborations, this strategic reset could signal a new era—less about shared governance and more about smart, purpose-driven cooperation.
