Nissan Sells Stake in Chennai Plant to Renault; Shifts Focus to Sales and Services in India

In a significant move, Japan’s Nissan has announced the sale of its 51% stake in the Chennai manufacturing facility to its joint venture partner, France’s Renault. Despite this shift, Nissan insists it is not exiting the Indian market but rather restructuring to focus more on sales, service, and new product introductions.

After investing over €550 million and committing another €140 million in India, Nissan has struggled to gain a foothold, capturing just 0.7% of the market with FY25 sales at 28,000 units, mostly driven by its lone locally-made model, the Magnite mini SUV.

Nissan will now pay Renault to manufacture its vehicles at the same Chennai plant, which has a capacity of 400,000 units annually but is currently underutilized. The brand plans to launch new models, including a premium 5-seater and 7-seater SUV and a sub-₹10 lakh MPV.

Frank Torres, President of Nissan India, reaffirmed commitment to the market, stating, “We are here to stay.” Interestingly, Nissan retains the option to source vehicles from other Indian manufacturers.

Meanwhile, Renault is doubling down on India, exploring new investments and EV opportunities, and aims to regain its past success with localized offerings. Both brands will continue to collaborate at their tech and business center in Chennai.