As we had earlier exclusively reported, Renault and Nissan today announced a fresh investment of Rs 5,300 crore in the Indian market, primarily to launch six new locally produced models between the two brands.
The six models would essentially comprise three new vehicles, each having a sister product in the other partner brand. Making the announcement, Ashwani Gupta, Nissan’s director and COO, and member of the alliance board, emphasised that while the models from both brands would overlap within the segment, they would be very different from each other. “We have graduated from cross badging. Like the Magnite and Kiger, there will be clear distinctiveness in all six cars and they will be very specific to each brand,” said Gupta.
Renault-Nissan to expand India line-up
While Gupta did not specify any model names, he did reveal that the SUVs would be positioned in the C and higher C-segment, while the EVs would be in the A-segment. Recently, the company also confirmed that it would bring to India the CMF-B platform and the electric version of the CMF-A.
The CMF-B platform will underpin the new Duster as well as a larger seven-seat version of it, while the electric CMF-A would form the basis of the Kwid EV. Both the CMF-B platform as well as the electric components of the CMF-A platform would need to be heavily localised as the products would go up against established and heavily localised products from brands like Tata Motors and Hyundai, among others.
The company also did not specify any technical details for the ICE SUVs or the two EVs. However, of the ICE SUVs, Gupta did say, “These platforms are compatible with each kind of powertrain that we want to do in the segments. For now, our focus is on ICE for C-segment and EV for the A-segment, but maybe we will add e-tech or e-power to it.” E-tech is a reference to hybrid power, while e-power is the brand’s range extender technology.
Renault-Nissan India investment: CBU play
While the bulk of this investment would go towards localisation, a lot of time will also be required to achieve this and Gupta said that the first of these models would only arrive by 2025. While this is some time away, the company says it is confident that customers and their dealers would respond positively as they have already shown great love towards the Magnite – the singular model in its stable.
Gupta also added, “In addition, to keep that momentum going and keep the brand moving forward, as we have already stated, we are considering some CBUs,” which the brand had showcased at an event in Delhi late last year.
New Alliance Structure
With the investment, the two companies will also rejig their shareholding structure. Under the new framework agreement, Renault Nissan Automotive India Private Ltd (RNAIPL) will move to an ownership of 51 percent Nissan and 49 percent Renault, as against the previous 70:30 equity holding. And the Renault Nissan Technology Business Centre (RNTBCI) will move to an ownership of 51 percent Renault and 49 percent Nissan.
The announcement today would also enable increasing the firm's R&D effort in India and help transition its Chennai plant to fully renewable energy by 2045. The company also said that to support the new projects, it will see an addition of up to 2,000 new jobs being created.