Nissan's Strategic Move in India

In a significant shift in its India strategy, Japan's Nissan has decided to halt car manufacturing in the country and sell its 51% stake in a Chennai plant to its joint venture partner, France's Renault. Despite investing over 550 million euros and committing an additional 140 million euros for new products, Nissan has struggled to capture a significant market share in India.

Commitment to India Remains Strong

Nissan executives have emphasized that the company remains committed to its operations in India, with no plans to exit the market. The company plans to pay Renault to manufacture its models at the Chennai plant, focusing on boosting sales and service. Currently, Nissan sells only one locally-made model, the Magnite, with sales of 28,000 units in FY25.

Future Plans and Market Strategy

Frank Torres, president for Nissan India, stated that new models will continue to be introduced in India, including a premium five-seater SUV and a seven-seater version, sharing its platform with Renault. Additionally, Nissan plans to introduce an under Rs 10 lakh MPV, competing in the same category as Maruti Ertiga and Renault Triber.

Renault's Ambitious Plans for India

While Nissan adopts a cautious approach, Renault is set to make new investments in India, including exploring electric vehicles. Luca de Meo, Global CEO of Renault, highlighted India as a key automotive market for Renault, aiming to replicate past successes with models like the Duster SUV and Kwid mini.

Joint Ventures and Technological Collaboration

The Renault Nissan Technology and Business Center India will continue to operate jointly, with Nissan retaining a 49% stake and Renault holding 51%. This collaboration underscores the long-term commitment of both companies to the Indian market, despite the current challenges.