NEW DELHI: Renault-Nissan alliance has committed to invest $600 million (`5,300 crore) in India to expand their product lineup, add about 2,000 new jobs and boost exports from their manufacturing plant in Chennai. The French-Japanese alliance will collaborate on launching six new production vehicles, starting in 2025, for domestic and international customers, including two new fully electric vehicles (EVs).
“India was the first Alliance plant and it will be at the centre of this new chapter of the alliance, with new vehicles, new R&D activities and new export markets taking our joint operations to the next level,” said Guillaume Cartier, Chairperson for Nissan’s Africa, Middle East, India, Europe and Oceania region. The two brands have been in India for a while but haven’t seen success to the level of Korean automakers such as Hyundai or Kia. Currently, they are known for selling sub-compact SUVs and their combined market share in local market was just about 4% in 2022.
Like other carmakers who are betting big on SUVs to establish a strong base in India, the alliance will follow a similar strategy. The six new models (comprise of three for each company) include four new C-segment SUVs. Two new A-segment electric vehicles will be the first EVs for both Renault and Nissan in India.
Auto sector experts have always cited India as a difficult market for foreign carmakers as the highly cost-sensitive market is dominated by very few players. India has seen high-profile exits such as General Motors and Ford in the last few years. Nissan pulled the plug on the Datsun brand in India last year. The new vehicles for the alliance will be built on common alliance platforms but would retain the distinctive styling of the respective brands. The alliance is hopeful their renewed action would lead to a big surge in exports, boosting its plant utilisation to 80%.