Renault Acquires Nissan’s 51% Stake in Indian Manufacturing Unit RNAIPL
Renault has acquired Nissan’s 51% stake in their Indian manufacturing unit, RNAIPL, becoming the sole owner. This transition aims to improve operational efficiency without affecting current operations or workforce levels at the Chennai facility. The deal also signals a recalibration of their partnership while Nissan plans to focus on sales and explore contract manufacturing with other OEMs.
On Monday, Renault Group announced its acquisition of the entire 51% stake of Nissan in the Renault Nissan Automotive India (RNAIPL), thereby becoming the exclusive owner. This transaction will not disrupt Nissan’s operations in India, including production, future model launches, or workforce structure, according to a company official’s statement. The deal is anticipated to finalize by mid-year, although financial details remain undisclosed, reflecting a gradual unraveling of their 20-year partnership, aiming for Nissan’s improved efficiency.
Renault’s CEO, Luca de Meo, emphasized the importance of this move, as the Renault Group aims to enhance Nissan’s competitiveness following their strategic alliance. The timing coincides with Ivan Espinosa’s upcoming role as Nissan’s new CEO, who is tasked with revamping the company’s performance amid current market pressures. Espinosa affirmed Nissan’s commitment to sustaining the alliance’s value while implementing necessary efficiency measures after relinquishing its production role in India to focus on sales and service.
Nissan will cease manufacturing vehicles in India but will concentrate on leveraging Renault’s production facilities in Chennai, Tamil Nadu. Frank Torres, divisional VP for the AMIEO region, indicated that exiting RNAIPL aligns with Nissan’s global reformation efforts. He assured that existing vehicle model production will continue until at least 2032 and that full capacity for current and future models has been secured.
The 600-acre Chennai facility serves both Renault and Nissan for domestic and export markets, having produced over 2.75 million vehicles and 4.5 million powertrain units since 2010. Currently, RNAIPL employs over 6,300 personnel, including permanent, contract, and temporary workers, with no anticipated job losses due to the ownership transition.
Torres also highlighted that the deal will not affect Renault Nissan Technology and Business Centre India (RNTBCI), which is jointly held by both companies. Additionally, Torres expressed interest in contract manufacturing ventures with other manufacturers to optimize model delivery in India, although no specific partnerships are confirmed. The immediate focus remains on introducing six new models in the market as planned, determining future manufacturing strategies based on emerging opportunities.
Renault’s acquisition of Nissan’s stake in RNAIPL marks a significant shift in their longstanding partnership while aiming to enhance Nissan’s operational efficiency in India. The transition facilitates Renault’s sole responsibility for production, allowing Nissan to concentrate on sales and service roles. Despite concerns, employment levels will remain stable, and future collaborations are being considered for efficient market operations.
Original Source: www.financialexpress.com
