For the uninitiated, Renault and Nissan recently announced an overview of their realigned and renewed alliance. They’ve now shared details about what they intend to do in the Indian market. Backed by additional investment, the duo plan to introduce new models, strengthen R&D and production and transition to carbon-neutral manufacturing.
An initial investment of around USD 600 million (INR 5,300 crore) is planned to support new projects. One of them is to develop and launch six new models (three each for Renault and Nissan). The count includes four C-segment SUVs, which will rival the likes of the Hyundai Creta, Kia Seltos and the Skoda Kushaq. A direct takeaway from this announcement is the return of the Renault Duster and its Nissan derivative. The Juke, perhaps?
The remaining two models will be EVs, again one each for Renault and Nissan. Both will serve the A-segment, meaning the brands will position the EVs for the mass market. However, neither lacks the experience to make a mark in that category. Renault has produced micro EVs such as the Twingo and the Zoe for years. Those will play a crucial role in creating pure-electric models for India.
The Renault-Nissan alliance will upgrade their shared manufacturing facility in Chennai to develop and manufacture the models mentioned above. Also, the duo aims to export those SUVs and EVs to other markets. The idea is to boost the plant’s production capacity utilisation to 80 per cent. In the process, thousands of job opportunities will be created. The estimate is around 2,000.
Another area where the Renault-Nissan alliance will invest is in making its Indian manufacturing operations carbon-neutral by 2045. It will be achieved by transitioning to 100 per cent renewable energy and reducing energy consumption by 50 per cent compared to today. Presently, the Chennai plant sources over 50 per cent of its electricity requirements from renewables, such as solar biomass and wind. The current 2.2MW solar plant will expand its output to 14MW. That’s more than a six-fold increase.
Lastly, their shareholding of businesses in India. In Renault Nissan Automotive India Private Ltd (RNAIPL), Nissan will have a 51 per cent stake and Renault at 49 per cent. On the other hand, in Renault Nissan Technology Business Centre (RNTBCI), Renault will hold a 51 per cent stake, and Nissan will keep 49 per cent.
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