Renault Group and Nissan Motor Co., Ltd have entered into a definitive agreement following the binding framework agreement announced earlier this year. These include further investments and new models for the Indian market apart from some other countries. The announcement says these transactions are subject to a some pre-conditions, including regulatory approvals, all of which are expected to be met by the end of 2023.
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As a result of this, it is now considering new key projects in India, South America and Europe to help all the alliance partners (Renault, Nissan and Mitsubishi). Both Renault and Nissan reaffirmed their commitment to India operations through new investments and vehicles, including EVs.
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The Alliance has already committed to the rollout of new products in the Indian market.
This will bring a big sigh of relief to Nissan (and even to Renault) customers and dealers, as the Alliance has been struggling globally since the COVID-19 pandemic due to business and management upheavals. This had a bearing on India, too, as it put a question mark on future products for the Indian arms of both brands, with no definitive pipeline of projects, especially made-in-India ones. Nissan currently has just the Magnite sub-4m SUV on sale. Renault is better off with a slightly larger portfolio, but it hasn’t seen any new additions since the Kiger sub-compact SUV came out more than two years ago.
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Nissan had teased a few international models last year as possible launches for India, but their arrivals are seemingly delayed. Its popular new X-Trail, once sold in India, is said to be a few months behind schedule in terms of the launch. Renault also missed the bus with the Duster, but plans are now afoot to get the popular SUV in its latest avatar back into the game. One of the other areas where the agreement will help in is electrification, with all brands set to benefit. Nissan currently has a slight edge there, which is sure to help Renault and even Mitsubishi.
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As part of this cooperation, Nissan has confirmed its intention to become a strategic investor in Ampere, Renault Group’s EV and software entity in Europe. Accordingly, Nissan has committed to invest up to €600 million (approx. Rs 5,450 crore) in Ampere. Renault Group and Nissan entered into a new Alliance agreement that will replace the current agreements governing them. As announced on February 6, 2023, Renault Group and Nissan will retain cross-shareholdings of 15 per cent. Renault will transfer 28.4 per cent of its Nissan shares into a French trust. As a result, Nissan would be able to exercise its voting rights attached to its shareholding in Renault Group.
