French carmaker Renault has announced new plans with Nissan, and now, the Japanese company’s Indian arm will be fully owned by Renault, after a Share Purchase Agreement. Renault Group would own 100 percent of Renault Nissan Automotive India Private Ltd (RNAIPL), by acquiring the 51 percent shareholding currently held by Nissan. There is more to this announcement.
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According to an official release, this will be a key opportunity for Renault to expand its international business, while Nissan will maintain its presence in India with a strong focus on increasing market coverage. RNAIPL would continue to produce Nissan models, including the New Nissan Magnite, while Nissan chooses Renault Group to develop and produce a derivative of Twingo, designed by Nissan. As per the new agreement, Nissan would be released from its commitment to invest in Ampere.
Nissan will continue to use RNAIPL as a sourcing for India and export in the coming years and this transaction is subject to customary regulatory approvals and its completion is expected by the end of H1 2025. Renault Group and Nissan will continue to jointly operate Renault Nissan Technology & Business Center India (RNTBCI) in which Nissan will retain its 49%-stake and Renault Group its 51%-stake.
After the completion of this transaction, RNAIPL would be consolidated at 100% in Renault Group’s consolidated financial statements. This year will see many investments for RNAIPL, in line with the launch of new vehicles. Thus, the free cash flow impact for the year is expected to be around €200 million.
Taking this fact into consideration, Renault Group confirms its 2025 full-year guidance of a free cash flow ≥€2bn including the consolidation of RNAIPL. Renault Group has already identified the necessary measures to compensate for the free cash flow impact in 2025. Renault Group also confirms its 2025 operating margin guidance.
Renault Group, through Ampere, a European EV pure player, would develop and produce a derivative of Twingo for the European market, an A-segment vehicle, for Nissan from 2026, confirming its know-how and roadmap for reducing development costs and time. This model will be designed by Nissan.
