Nissan, Renault Will Make Two EVs in India After $600 Million Investment

Nissan Motor Co and Renault SA said on Monday they would invest $600 million to make six new models in India.

The Japanese and French automakers will work on the projects from their base in Chennai, turning it into an export hub, they said in a statement.

The six models, with each automaker making three, will be built on joint platforms and will also be exported, they said. The new models will consist of two electric vehicles, the first EVs to be rolled out by the automakers in India, and four sports utility vehicles (SUVs).

The automakers last week unveiled details of their redesigned alliance and gave details of new joint projects in Latin America, India and Europe.

The two automakers reached a deal in principle earlier this month to restructure their two-decade partnership by putting both companies on an equal footing in terms of shareholding and with Nissan investing in Renault’s new electric vehicle (EV) unit.

In India, the world’s fastest-growing car market, the new investment would be led by Nissan, and the companies were  evaluating vehicles they could launch from 2025, two of the people told Reuters. That could include a reboot for Renault’s popular Duster sport-utility vehicle, they said.

The new collaboration underscored the pressure automakers face as they invest in EVs, automation and other software services even as demand for gasoline cars greatly outstrips that for EVs, especially in up-and-coming markets like India.

Last month, it was reported that Renault was considering building a mass-market electric vehicle in India as part of a renewed push into a market where EV adoption is expected to grow quickly from a small base.

© Thomson Reuters 2023