Celebrating the 25th anniversary of the alliance, the global board visited India for the first time outside of Japan or France.
27 Mar 2024 | 15236 Views | By Ketan Thakkar, Shahkar Abidi
Jean Dominique Senard, the chairman of Renault Nissan Alliance said don’t “underestimate the strength of the alliance worldwide,” the automotive industry is full of cycles, and this Indian unit is in the middle of “a revival cycle.”
He added that in India the alliance has huge assets and the group ...
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Jean Dominique Senard, the chairman of Renault Nissan Alliance said don’t “underestimate the strength of the alliance worldwide,” the automotive industry is full of cycles, and this Indian unit is in the middle of “a revival cycle.”
He added that in India the alliance has huge assets and the group will “not just going to let them go away."
Celebrating the 25th anniversary of the alliance, the global board visited India for the first time outside of Japan or France. With the next phase of USD 660 million committed to the Indian market, the alliance partners Renault Nissan want to come back in the reckoning in the domestic buyers' mindspace – with the brands struggling with jaded products and sub-optimal market share.
Both Renault and Nissan will get 2 mid-size SUVs each, based on the CMF-B platform and there is the thought of bringing entry electric vehicles on the CMF-A EV platform.
He informed that post the reshaping of the alliance between Renault and Nissan, the group will now apply “a more flexible and local project-led approach,” in India which will allow for “quick and agile decisions that suit regional requirements.”
Post the reshaping of the alliance globally, the Renault Nissan Automotive India Private Limited equity structure too was changed from 70:30 to 51:49 – with Nissan continuing to hold the majority. Whereas the Renault Nissan Technology Business Centre the R&D arm – Renault holds the majority of 51% and Nissan, the balance.
“We are obviously convinced that this approach will strengthen our long-term partnership and give our organisations much greater responsibility and autonomy,” asserted Senard.
The global chairman said he was excited to be in India, “a country that obviously has and will continue to have a major role in our organisation in the future. India, halfway between France and Japan, will be more than ever, and not only for geographical reasons, at the heart of our alliance operations.”
Since its entry in 2009 – the alliance has sold more than 1.4 million cars from our two companies on India's roads. The majority of them are developed and manufactured here, with a localisation ratio of over 90%, claimed the company.
The two joint ventures, RNAIPL and RNTBCI, employ 15,000 members who contribute to the development of cars for the Indian market and for export, as well as to key developments in high-tech domains and for global cars, claimed the company.
“India is not just a market, it is a vibrant ecosystem of limitless opportunities,” summed up Senard.
Crediting the state for its excellent administration – Senard said that Tamil Nadu was chosen for its dynamism and industrial opportunities, and it has proved to be a crucial location for approaching the Indian market and for exporting.
“It is India's second-largest economy and many of our competitors have also recognised the region's potential and have invested here. Tamil Nadu, as you know, is a key player in India's automotive industry, accounting for 45% of the country's auto exports and 35% of its auto components exports. It is also a major export hub for electronics, with the highest electronics exports in India. The region is also investing heavily in the future, with 22 of the top 100 Indian universities located here,” elaborated Senard.
Also read: Half of Renault Nissan R&D work in India caters to global operations