Renault-Nissan to Invest Rs.5,300 Crore in India

16 February 2023: Renault-Nissan has announced a fresh investment of Rs.5,300 crore in India. The combine will soon roll out six new vehicles, including two new fully electric vehicles (EVs), for the domestic and international markets. The funds will also be used to upgrade the Renault-Nissan factory in Chennai into an international export hub.

Renault and Nissan will each introduce three new vehicles, which will be engineered and built in Chennai on common alliance platforms while retaining the individual, distinctive styling of the respective brands. They will include four new C-segment SUVs. Two new A-segment cars will be the first EVs for both Renault and Nissan in India.

Ashwani Gupta, COO, Nissan Motor Co. said “Nissan’s strength is in SUVs and more than 70% of the company’s global sales come from the segment. Magnite is a classic example in India and where we are missing today are in the A and C segments. We will be doubling our market coverage there.”

Gupta further said “New phase will see higher capacity utilisation and introduction of EVs, which will commence from 2025. We are currently at below 50% capacity utilisation and are looking at scaling it up to 80% over a period of time. At present, we don’t have a plan to set up a new plant as we have got an excellent factory.”

An MoU on the new investment commitment was signed in the presence of Tamilnadu Chief Minister MK Stalin recently. In a new long-term strategy, the alliance is targetting higher production and R&D activity; it will launch EVs and transition to carbon-neutral manufacturing. Additional R&D activity will create up to 2,000 new jobs adding to the current workforce of 15,000.