Renault, Nissan Investing $600 Million To Expand Lineup In India
The pair will invest $600 million in India to expand their car lineup, add jobs and decarbonize a manufacturing plant in Chennai.
(Bloomberg) -- Renault SA and Nissan Motor Co. unveiled their first joint project since announcing a revamp of their carmaking alliance last week.
The pair will invest $600 million in India to expand their car lineup, add jobs and decarbonize a manufacturing plant in Chennai, the companies said in a joint statement on Monday.
The initiative is a key element of the operational projects unveiled by the auto manufacturers last week in London. As part of the agreement, Renault will reduce its stake in Nissan over time to 15% from 43%, to equalize their cross-ownership, and Nissan plans to invest in Renault’s electric-vehicle unit that is being carved out of the French carmaker.
Read more: Renault and Nissan’s Revamp Opens Up Chase for New Partners
The two will produce six new vehicles in the South Asian nationa — including two electric cars — for domestic and international customers. The investment will add as many as 2,000 jobs at the Renault Nissan Technology & Business Center in Chennai, the companies said, and make the factory there carbon neutral by 2045.
“To capture the growth potential, we want to utilize the alliance assets, especially in India,” Nissan Chief Operating Officer Ashwani Gupta said in a Bloomberg Television interview ahead of a ceremony to announce Renault and Nissan’s future operations in India on Monday.
The six new models include three from each company, all engineered and built on common platforms in Chennai. They include four SUVs and two EVs.
“The new models will not only be aimed at Indian customers but will also signal a significant increase in exports from India,” the companies said in a release.
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