The Renault-Nissan saga is as complex as a tangled web, as the French automobile maker is in talks with JSW Group for a joint venture in India. Bloomberg cites insiders stating that Renault is looking to scale back from its long-term Alliance with Nissan.
Earlier, Renault and Nissan finalised a restructuring of their alliance, which included reducing their mutual shareholdings from 15% to 10%. This is part of a larger initiative to restructure the alliance and enable greater operational independence. Additionally, Renault will take full ownership of their joint venture in India by purchasing Nissan’s 51% stake in the Renault Nissan Automotive India Private Limited (RNAIPL) manufacturing facility.
Renault’s push to expand in India with JSW Group
Renault may have less than 1% market share in India, but it has ambitious plans in India and is looking to increase its footprint with JSW in India. According to Bloomberg, the talks with JSW Group are in early stages, and Renault is expected to have full control of RNAIPL this month. The French car maker continues to export vehicles to Africa and the Asia-Pacific regions. India continues to be an important market for Renault as it set up its largest design studio in Chennai outside France.
Traditionally, European automobile companies struggle in India, but Renault has taken a smart route and is only present in the mass market sub-4 metre space. In this affordable price bracket, the French car maker is offering three vehicles, starting from the Kwid, Triber and Kiger. Renault’s best-selling vehicle in India is the Triber, which is the most affordable three-row MPV in the country. All the Renault vehicles are powered only by petrol engines.
JSW in automobile segment
JSW is already present in the Indian automobile sector with a 35% stake in MG Motor, SAIC Motor Corp. JSW wants to be a serious player in the electric vehicle segment, and a JV with Renault will help them establish themselves further.
