Japanese car company Nissan has decided to stop making cars in India. Instead, it will sell its 51% share in its Chennai factory to its French partner Renault. However, Nissan says it will still stay in India by having Renault manufacture its cars at the same plant.
Nissan has struggled to succeed in India, despite investing over €550 million and committing another €140 million for new models. The company currently sells only one locally-made car, the Magnite, and sold just 28,000 units in FY25, holding only 0.7% of the total Indian car market (which sold about 41 lakh cars).
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Nissan’s Future Plans
Company executives say Nissan is not leaving India and will continue introducing new models. Nissan President Frank Torres and India MD Saurabh Vats confirmed that Nissan will remain in the market. The company may also buy cars from other manufacturers in India, not just Renault. In the past, Nissan sourced a hatchback from Maruti Suzuki for export.
Nissan plans to launch:
- A premium five-seater SUV
- A seven-seater SUV (based on the Renault model)
- An affordable MPV under ₹10 lakh, competing with Maruti Ertiga and Renault Triber
Factory Ownership & Renault’s Strategy
The Chennai factory can produce 4 lakh cars per year, but currently, only one-third of this capacity is being used. Renault is committed to investing in India and is also looking at launching electric vehicles. Renault’s Global CEO Luca de Meo said the company is planning a strong strategy for the Indian market.
Despite Nissan selling its stake in the Chennai plant, both companies will continue operating the Renault Nissan Technology and Business Center India, where Nissan will hold 49% and Renault 51%.
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Renault is now looking to regain its success in India with new models, similar to its past hits like Duster SUV and Kwid.
