Renault and Nissan renew commitment to Indian operations through new investment and vehicles

Renault and Nissan have announced a new long-term vision for India,increasing production and R&D activities, introducing electric vehicles, andtransitioning to carbon-neutral manufacturing.

From their base in Chennai, the companies will collaborate on six newproduction vehicles for domestic and international customers, including two newfully electric vehicles, uplifting the Renault-Nissan centre into aninternational export hub.

An initial investment of around $600m USD / ₹5300 bn INR is planned tosupport the new projects, which will see an up to 2,000 additional new jobs createdat the Renault Nissan Technology & Business Centre in Chennai. At the sametime, the RNAIPL factory will become carbon-neutral with a significant increasein renewable energy generation.

Following last week’s announcement of new high-value-creationoperational projects for the Renault-Nissan-Mitsubishi Alliance, the future forRenault and Nissan’s Indian operations was outlined today at an officialceremony in Chennai by Nissan’s Director, Chief Operating Officer, AshwaniGupta, alongside officials from the Tamil Nadu Government.

Guillaume Cartier,Chairperson for Nissan’s Africa, Middle East, India, Europe and Oceania region, said: “"Renaultand Nissan are fully committed to the Indian market, committed to electrifyingthe Indian market and committed to minimising our impact on the environment.

“Indiawas the first Alliance plant and India will be at the centre of this newchapter of the Alliance, with new vehicles, new R&D activities and newexport markets taking our joint operations to the next level.

“For thefirst time, the Nissan line-up in India will reflect our global power inhigh-quality SUVs and EVs, bringing greater value to our employees, customersand communities.”

FrançoisProvost, International Development & Partnerships Renault Group andManaging Director of Alliance Purchasing Organization,said: “India is a key market for Renault Group. Over the past 14 years, wehave been developing the Renault Brand with our teams and dealers, up toreaching 100 thousand vehicles sold per year. India has also a key role in ourR&D worldwide footprint. This project together with Nissan is a firstconcrete output of the new Alliance ambition released on February 6^th.”

Mr.S Krishnan, Additional Chief Secretary, Industries, Government of Tamil Nadu, said:“The Renault-Nissan Alliance in Tamil Nadu has had manufacturing and designfacilities operating in the State for more than 15 years now. This is a veryvaluable and important relationship for the Government of Tamil Nadu and theAlliance. It employs about 15,000 people directly in the State and has been oneof the mainstays in ensuring that Tamil Nadu remains the automotive capital ofIndia and an important hub for the manufacture of automobiles and autocomponents and automobile design as well. We are very excited about this newproposal of modernization and fresh investment by the Renault-Nissan Alliancein Tamil Nadu. This genuinely brings to life ‘Make in Tamil Nadu and Make in Indiafor the World. “

Introducingnew models into new segments

Thesix new models will comprise of three for each company, engineered and built inChennai. They will be built on common Alliance platforms while retaining theindividual, distinctive styling of the respective brands.

Theywill include four new C-segment SUVs. Two new A-segment electric vehicles willbe the first EVs for both Renault and Nissan in India, building on the heritageand expertise of both brands in mass-market electrification, which began withthe Nissan LEAF and Renault Zoe more than a decade ago.

Aninternational Renault and Nissan hub in Chennai

Thenew models will not only be aimed at Indian customers but will also signal asignificant increase in exports from India, boosting plant utilisation to 80%and securing many thousands of jobs at the RNAIPL plant in Chennai for manyyears to come.

Complementingthe additional production will be an increase in R&D and associatedactivities at the Renault Nissan Technology & Business Centre India, whichis expected to create up to 2,000 new jobs at the site near Chennai, focusingon new Indian and international projects.

Roadmapto carbon neutral vehicle manufacturing

TheRNAIPL plant, already one of the Alliance’s leading centres for energy andresource reduction, also is announcing its roadmap to carbon neutrality.

Thiswill be achieved by 2045, through an ongoing programme to transition to 100%renewable energy, while reducing energy consumption at the plant by 50% comparedto today.

ChennaiPlant already sources more than 50% of its electricity from renewables,including solar, biomass and wind. The existing solar plant will become morethan six times bigger, expanding to a 14MW plant from 2.2MW today.

Renewedpartnership

Asa consequence of the renewed commitment of both companies to the Indian market,Renault and Nissan are realigning their shareholding in their joint operations.

Underthe new framework agreement, Renault Nissan Automotive India Private Ltd(RNAIPL) will move to an ownership of 51% Nissan - 49% Renault. Renault NissanTechnology Business Centre (RNTBCI) will move to an ownership of 51% Renault-49% Nissan.This reinforces thepartnership for the long-term and will empower the joint ventures with moreresponsibility and more autonomy.

NissanAMIEO Chairperson Cartier added: “Renault and Nissan have renewed their commitmentto India today and we thank the Tamil Nadu Government for their strongpartnership and support.

Iwas extremely proud to be in Chennai to share the good news with the team.Their performance and competitiveness have given us the confidence to investfor the long-term.”