Renault-Nissan alliance will develop six new production vehicles for domestic and global markets in India with an initial investment of around Rs. 5,300 crore
Renault and Nissan have confirmed new investments for India in a recent announcement ensuring their long-term commitment to increase production, enhance R&D, bring in new models including electric vehicles and transition towards carbon-neutral manufacturing.
The alliance will develop six new production vehicles for domestic and global markets including two new EVs as they seek to transform the Renault-Nissan centre into an international export hub. An initial investment of around Rs. 5,300 crore has been planned to support the new ventures, which will see up to 2,000 additional new jobs created at the Renault Nissan Technology & Business Centre in Chennai.
The Oragadam plant, the first factory from the alliance, will become carbon-neutral with a significant increase in renewable energy generation. The upcoming range of six all-new vehicles, three for each brand, will be engineered and manufactured in the Tamil Nadu plant and they will have several commonalities to achieve economies of scale including the shared platforms.
However, they will retain the individual identity of each brand. Renault and Nissan will launch four new C-segment SUVs in India and they will be accompanied by two new A-segment electric vehicles building on the global expertise in mass market electrification. These models will also be shipped abroad and thus boosting plant utilisation to 80 per cent.
The additional production will be complemented by new research and development activities at the Renault Nissan Technology & Business Centre India as new recruitments will also be made. The factory is projected to achieve carbon neutrality by 2045 through an ongoing programme to transition to 100 per cent renewable energy.
This will also help in reducing energy consumption at the plant by 50 per cent compared to today. It must be noted that the plant already sources over 50 per cent of its electricity from renewable sources and the existing solar plant will become more than six times bigger expanding to 14 MW. Besides the future plans, Renault and Nissan have also realigned their shareholding at the JV.
Renault Nissan Automotive India Private Ltd (RNAIPL) now has Nissan as the major shareholder at 51 per cent while the remaining 49 per cent will be owned by Renault. The Renault Nissan Technology Business Centre (RNTBCI) will move to an ownership of 51 per cent for Renault and 49 per cent for Nissan.
