Renault Group Acquires Full Ownership of Chennai Plant, Plans Large Expansion in India

Renault's full takeover of the Chennai plant brings all its India operations under one roof in a key global market.

Renault Group took an outright step in reorganising its presence in India by buying the 51 per cent stake of Nissan in its joint venture Renault Nissan Automotive India Pvt. Ltd (RNAIPL). With this, Renault owns the Chennai factory outright, consolidating its operations in one of the world's most strategically important and rapidly growing car markets under a single entity.

Also Read: Competition Commission of India Clears Renault's Complete Takeover of India Manufacturing Joint Venture

François Provost, the CEO of Renault Group mentioned, "India is an extremely significant market for the Renault Group. Over the past 14 years, we have been able to position the Renault brand successfully with the help of our dedicated teams and partners with sales reaching an all-time high of more than 100,000 vehicles a year. India also plays a very prominent role in our global network of R&D. With full control of our Chennai plant, we now have all the resources to accelerate in India. Stéphane Deblaise, with his rich international experience and thorough knowledge across our entire value chain, is well placed to define and implement our strategy in the country.

Also Read: Exclusive: Renault Sees Potential for India to Be Its Biggest Market by 2030

Chennai Plant to Power Renault's Next Phase of Growth

The Chennai plant, which has already produced more than 2.8 million vehicles and 4.6 million powertrains since it was inaugurated in 2010, will now be fully integrated into Renault's global manufacturing and export activities. The plant is supported by over 300 local vendors and has an installed capacity of producing over 4 lakh vehicles per year.

Also Read: Renault To Buy Out Nissan From RNAIPL JV

New Models and Multi-Energy Platform on the Horizon

Renault has planned to bring in four new models to India as part of a fresh product offensive, starting with the just-refreshed Renault Triber. The next launches will be backed by a new-generation, ultra-flexible multi-energy platform, which will be localised and manufactured at the Chennai plant.

With its new platform, Renault will provide solutions for several propulsion technologies, including ICE, hybrids, and EVs, in line with worldwide trend shifts. Some of the new launches include the new Duster and its 7-seater version, the Bigster.

The carmaker has also been testing the Kwid EV (on the City K-ZE exported abroad), suggesting that it will be launched very soon in India, making it its first mass-market electric product for the country. 

Also Read: Nissan To Bet On India For Revival Amid Massive Losses

What This Means for Nissan's India Strategy

When contacted, a Nissan Motor India spokesperson said, "Today, the transaction of shares in RNAIPL between Nissan and the Renault Group has been completed, and the Renault Group now owns 100% of the shares in RNAIPL. Nissan and the Renault Group will continue their current projects, and RNAIPL will continue to produce Nissan vehicles. India remains a strategic growth hub for Nissan with new model launches, export potential and a strong engineering presence."

Also Read: Nissan Revs Up India Focus as Global Restructuring Shuts Mexico Plant

Partnership Still in R&D and Current Production 

It's also worth noting that the R&D centre remains a joint venture, so Nissan isn't completely withdrawing from the Indian ecosystem but is shifting towards a leaner role. RNAIPL would still build Nissan models as envisaged, but the change will gradually alter the power equation between the two brands in India.

Also Read: Nissan India Mulls Double Production, $700 Million Investment

Leadership Transition to Drive Strategic Shift

To drive this change, Stéphane Deblaise will succeed as CEO of Renault Group in India from September 1, 2025. Deblaise has robust global experience and is likely to drive the brand's aggressive growth phase with product innovation, localisation, and export expansion. 

Also Read: “Nissan Is Not Leaving India”, Says MD Saurabh Vatsa

India's Strategic Significance in Renault's Global Strategy

India already has Renault's second-largest engineering and R&D centre outside France, which is a joint venture with Nissan. In India, Renault has a network of more than 350 sales points and 450 service points. Even in the face of world headwinds, the company has sold over 100,000 units per annum in its heyday. By taking complete control of manufacturing back and streamlining operations, Renault is looking to return to that level and above, with India serving both as a domestic growth driver and export base for emerging markets.

Also Read: Renault Appoints Stephane Deblaise as CEO for India