The Renault–Nissan–Mitsubishi Alliance Entering New Business Phase in India

On February 13, 2023, Nissan and Renault announced a new long-term vision for India. The new long-term vision is positioned as part of the new alliance between Nissan and Renault, for which a basic agreement was announced on February 6, 2023. It consists of the following four points: (1) Nissan and Renault will invest 600 million USD in their joint production company (RNAIPL) and joint development company (RNTBCI) in Chennai, Tamil Nadu State. The two bases will develop and produce six new models, three from each brand, using the alliance’s common platform. They plan to launch one model at a time, one of which will be an A-segment BEV and two will be C-segment SUVs. (2) The new models are planned not only for domestic sales in India but also for export with an aim to raise the operating rate of the plant to 80%. (3) RNAIPL will use exclusively renewable energy by 2045. (4) The investment ratio of RNAIPL and RNTBCI will be reviewed in the future. The utilization rate of RNAIPL, which has an annual production capacity of 480,000 units, was only 43% based on the actual production in 2022 (208,000 units). In order to raise utilization rate to 80%, it will be necessary for the alliance partners to add 176,000 units to the actual performance in 2022.