Renault considers collaborating with JSW following Nissan's departure, according to a media report.
Renault SA, the French automobile manufacturer, is currently exploring a strategic partnership with the JSW Group, a leading Indian conglomerate, as part of its efforts to strengthen its independent operations in India. This approach aligns with Renault's broader strategy to restructure its long-term alliance with Nissan Motor Co.
In a significant move, Renault is nearing completion of acquiring Nissan's stake in their jointly owned Chennai manufacturing facility. This move follows a March agreement to reduce cross-shareholding between Renault and Nissan from 15% to 10% each, as part of recalibrating their global alliance. However, no further details about the terms of this acquisition were provided.
Renault is also in early discussions with JSW Group for a potential joint venture. This partnership could potentially leverage JSW's diverse interests in sectors like steel, infrastructure, and electric mobility. JSW Group already has a foothold in the Indian automotive market through its stake in MG Motor India, and it is seeking to expand its presence in the electric mobility segment. No information about the terms of this potential partnership was provided.
The successor to outgoing CEO Luca de Meo, who has emphasized profitability and expansion into emerging markets, may influence the direction and scope of any future partnerships. Renault may finalize its partnership strategy post the appointment of a successor.
Renault has historically used joint ventures in India, first with Mahindra & Mahindra and then with Nissan. Despite selling only about 38,000 vehicles in India in FY25, Renault continues to maintain a presence with models like the Kwid and Triber. It also exports vehicles to African and Asia-Pacific markets from its Indian plant.
The potential partnership with JSW Group and the acquisition of Nissan's stake in the Chennai plant mark key steps in Renault's strategy to deepen its independent operations in India and expand its market share in emerging markets. However, no details about the impact of these moves on Renault's financial performance or market position were provided.
Renault's potential joint venture with JSW Group could draw upon JSW's interests in sectors like finance, transportation, and the automotive industry, enriching their collaboration. The diverse interests of JSW Group, including electric mobility, align with Renault's aim to expand in this segment, particularly in India.
