The Renault-Nissan alliance is spending Rs 5,300 crore in Tamil Nadu to renovate its plant close to Chennai, a move that is expected to create 2,000 more jobs.
Six new models, including two small electric vehicles, are planned to be produced, with Nissan and Renault producing three models apiece. These models are aimed at both domestic and foreign consumers. In 2025, the debut model will be released. On Monday in Chennai, the TN government and Renault-Nissan inked a memorandum of agreement. Chief Minister M K Stalin was present.
In-depth details about Renault-Nissan to invest Rs 5300 crore in Tamil Nadu plant that will create 2000 jobs
The managing director and CEO of the state-sponsored nodal agency Guidance Bureau, Vishnu Venugopal, exchanged the MoU with representatives of the Renault-Nissan alliance. While the partnership aims to improve its manufacturing capacity, the plant’s refurbishment will raise Tennessee’s vehicle exports.
In order to create equal partners, the two companies are also revamping their joint manufacturing and R&D departments in India. Renault Nissan Automotive India would change its ownership of 51% Nissan and 49% Renault from 70% Nissan and 30% Renault under the amended terms of the agreement.
Ford has ceased its Chennai manufacturing activities in Maraimalai Nagar, necessitating the much-needed investment in the industry. The facility is now at 47% utilisation, with plans to boost it to 80% with the launch of additional models.
Nissan’s CEO predicts that by 2030, electrified vehicles would account for 44% of the company’s product mix.
It will also shift the Chennai manufacturing site to 100% renewable energy by 2045. “The new idea of modernization and fresh investment by the Renault-Nissan alliance comes to life ‘Made in Tamil Nadu’ and ‘Make in India for the World,” said S Krishnan, TN Industries Secretary. He stated that the partnership has been one of the constants in ensuring that Tamil Nadu remains India’s automotive capital and an essential hub for the manufacture of autos, auto components, and automobile design.
“By 2030, Nissan will have 44% of its product mix as electrified automobiles. By 2025, we will be ramping up our product offerings with the introduction of the first of six models built on shared Alliance platforms while keeping the individual, distinctive style of the separate brands,” stated Nissan Global CEO and Alliance board member Ashwani Gupta.
By managing vertical integration of the whole supply chain, the alliance intends to be more competitive in the electric car industry. He stated that this covers battery manufacturing, car manufacturing, safety-assisted technologies, and autonomous driving technologies.
Since the alliance’s inception in Chennai 15 years ago, it has suffered a leadership and financial crisis in 2018-19, resulting in changes in business strategy. “Previous to 2018, we would have made large investments based on volume. The volume change will now be the result rather than the goal. This will be determined by how the alliance generates value together. “The idea is to establish high-value collaborations with an emphasis on performance-based synergies rather than mere synergies,” Gupta explained.