Renault Group Acquires Full Stake in Renault-Nissan India JV

[350Z]

Renault Group and Nissan have announced new strategic projects. The Renault Group would now own 100% of Renault Nissan Automotive India Private Ltd., by acquiring the 51%-shareholding currently held by Nissan.

• The transaction is subject to customary regulatory approvals and its completion is expected by the end of H1 2025.
• This amendment would have no impact on the Nissan shares held by Renault Group in a French trust (i.e. 18.66% shareholding in Nissan).
• RNAIPL would continue to produce Nissan models, including the New Nissan Magnite, and will serve as a crucial pillar for the company's future expansion plans.
• This project represents a key opportunity for Renault to expand its international business. Nissan will maintain its presence in India with a strong focus on increasing market coverage.
• The New Alliance Agreement would be amended to increase the flexibility of each party regarding their cross-shareholdings by setting the lock-up undertaking at 10% (instead of 15% currently).
• Renault Group and Nissan will continue to operate jointly Renault Nissan Technology & Business Center India (RNTBCI) in which Nissan will retain its 49%-stake and Renault Group its 51%-stake.
• Nissan would be released from its commitment to invest in Ampere. Thus, the investment agreement entered into on July 26, 2023, between Renault Group, Nissan and Ampere would be terminated.
• Renault Group, through Ampere, would produce a derivative of Twingo for Nissan from 2026 (for Europe), confirming its know-how and roadmap for reducing development costs. It'll be designed by Nissan.

“As a long-time partner of Nissan within the Alliance and as its main shareholder, Renault Group has a strong interest in seeing Nissan turnaround its performance as quickly as possible. Pragmatism and business-oriented mindset were at the core of our discussions to identify the most effective ways of supporting their recovery plan while developing value-creating business opportunities for Renault Group. This Framework Agreement, beneficial for both parties, is the proof of the agile and efficient mindset of the new Alliance. It also confirms the attractiveness of our products with Twingo as well as our ambition to grow our business on international markets. India is a key automotive market and Renault Group will put in place an efficient industrial footprint and ecosystem,” said Luca de Meo, CEO of Renault Group.

“Nissan is committed to preserving the value and benefits of our strategic partnership within the Alliance while implementing turnaround measures to enhance efficiencies. Our goal is to create a more agile and effective business model that allows us to respond quickly to changing market conditions and conserve cash for future investments. We remain committed to the Indian market, delivering vehicles tailored to local consumer needs while ensuring top-notch sales and service for our existing and future customers. India will remain a hub for our research and development, digital and other knowledge services. Our plans for new SUVs in the India market remain intact, and we will continue our vehicle exports to other markets under the “One Car, One World” business strategy for India," said Ivan Espinosa, President and CEO of Nissan.

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