Renault-Nissan Investment India: Not a long ago, India was not in the playbook of long term investments by big auto majors. Things have changed quite a bit now. The latest decision by Renault-Nissan is a big testament to it.
Renault-Nissan $600 million Investment in India
Nissan-renault have announced that they will be pouring $600 million (Rs 5,300 crore) more in India. With this money, the joint venture between French Renault and Japanese Nissan will develop, manufacture, sell and export six new models. These include four midsize SUVs in C-segment and two entry-level EVs in A-segment. Both Renault and Nissan will manufacture 3 new products each.
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Apart from that, some structural changes have been introduced too. Earlier IN the venture named , Renault Nissan Automotive India Private Ltd (RNAIPL), Nissan’s share has been reduced from 70 to 51 per cent while Renault’s share has been increased from 30 to 49 per cent.
The change will not amplify the production capacity. Up until now, their Tamil Nadu plant utilises only 49 per cent of its capacity. The new cars will result in it going as high as 80 per cent.
Intensifying auto market in India
Looking at their track record, one can hope that the venture’s performance in the domestic market will improve. According to latest estimates available, with 87,118 sales in India, Renault is ranked number 9, while Nissan is at 13th position with a sales figure of 34,565. Failure to sell much in India is somehow compensated by their export figures.
The new investments are expected to boost competition in India’s auto market. Currently, the Automobile industry in India is valued at $222 billion and is expected to reach $300 billion in near future. Electric and Hybrid vehicles are going to play a key role in it. The new alliance of Toyota Motor Corp. and Suzuki Motor Corp and players lie Tata Motors Ltd, Mahindra & Mahindra Ltd among others are other key participants in it.
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