On Monday, Renault Group announced its intention to acquire the remaining 51 percent stake in Renault-Nissan Automotive India Private Ltd (RNAIPL). Currently, Nissan Motor Corp holds the majority share in RNAIPL. This acquisition will enable Renault to gain full ownership of the manufacturing facility of the Renault-Nissan Alliance located in India.

The RNAIPL plant, situated in Chennai, began operations in 2010, with Renault and Nissan initially owning 30 percent and 70 percent stakes, respectively. Subsequently, a 2023 agreement between the two automotive manufacturers saw Nissan's stake reduced to 51 percent. As part of this arrangement, both companies committed to jointly investing $600 million to develop six new passenger vehicles in India.

The two manufacturers have now decided to further relax their long-standing alliance, which may lead to additional share sales as Nissan faces pressure to strengthen its financial position, according to Bloomberg. The companies will be able to decrease their cross-ownership from 15 percent to a minimum of 10 percent, as stated by the French automaker. In addition to taking over the alliance's joint venture in India, Renault plans to produce a compact electric vehicle for Nissan starting next year.

Notably, this agreement was revealed just one day prior to Ivan Espinosa assuming the role of Nissan CEO on April 1, succeeding Makoto Uchida after a potential collaboration with rival Honda Motor Co. fell through.

Renault remains Nissan's largest shareholder, holding a 36 percent stake. However, the original equipment manufacturer has been gradually unwinding their partnership amid increasing competition and mutual distrust. Meanwhile, Nissan is under pressure to revitalize its aging product lineup and address challenges posed by recent tariff initiatives from Donald Trump.

With this new agreement, Nissan will be released from a previous obligation to invest in Renault's electric vehicle division, Ampere. Ampere is set to develop and manufacture a vehicle designed by Nissan based on Renault's Twingo model, starting in 2026.

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