Nissan Sells Plant to Renault to Save Company

KatadataOTO – Nissan Motor Corporation and Renault Group have revealed that they are restructuring their alliance. This is being done to avoid bankruptcy and maintain the alliance.

Nissan has even agreed to sell its 51 percent stake in Renault Nissan Automotive India Private Ltd (RNAIPL) to Renault. The transaction value is reported to be quite large, reaching 200 million euros, and is expected to be completed by the end of the second quarter of 2025.

Thanks to this, Renault's stake in the company will become 100 percent. However, Nissan will receive the fresh funds needed to survive.

Although fully owned by Renault, the Nissan Magnite will continue to be produced in India. The Japanese manufacturer also ensures it will continue to have a presence in India by offering a variety of products.

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Nissan also revealed that selling their shares in the Joint Venture company could be a good opportunity for Renault to expand its market. The French manufacturer could even accelerate its expansion in India. 

It should be noted that the Chennai factory has a production capacity of more than 400,000 units per year. The facility is there to produce vehicles on the CMF-A and CMF-A+ platforms, which were jointly developed by Nissan and Renault.

In addition, the factory was also built to produce the CMF-B platform in 2026 along with four new models.

“Nissan is committed to maintaining the value and benefits of the strategic partnership within the Alliance while implementing recovery measures to improve efficiency. Our goal is to create a more agile and effective business model

that can respond quickly to changing market conditions and also save money for future investments,” said Ivan Espinosa, President & CEO of Nissan, as reported by Global Data.

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It should be noted that Nissan is experiencing serious financial problems, requiring it to take various aggressive actions to save the company. One of them was collaborating with Honda some time ago.

Unfortunately, their agreement was canceled, so Nissan has to find another way to get fresh funds. Because if not, the company is threatened with bankruptcy.