Renault eyes India growth via JSW tie-up amid Nissan alliance overhaul
French carmaker Renault is reportedly exploring a joint venture with India’s JSW Group as it seeks to boost its independent operations in the country, even as it reorganises its global partnership with Nissan Motor Co. The discussions, still in the early stages, mark Renault’s strategic push to strengthen its position in the Indian market, one of the fastest-growing automotive sectors worldwide.
Renault is close to acquiring Nissan’s stake in their jointly owned manufacturing facility in Chennai. This facility has been central to both companies’ India operations for years. The potential stake buyout is part of a broader shift following Renault and Nissan’s March agreement to reduce their mutual shareholding from 15% to 10% each, reflecting a loosening of their long-standing global alliance.
JSW Group, led by industrialist Sajjan Jindal, has been gradually expanding its presence in the automotive sector. The conglomerate already holds a 35% stake in MG Motor India through a joint venture with China’s SAIC Motor Corp. Its growing interest in the electric vehicle (EV) space aligns with JSW’s broader investments in steel, energy and infrastructure sectors that increasingly intersect with EV manufacturing.
For Renault, India remains a challenging yet promising market. Despite operating in the country for over a decade, the company’s current annual sales stand at approximately 38,000 vehicles, accounting for less than 1% of India’s passenger vehicle market. However, Renault’s India operations continue to play a key role in its global supply chain, with exports to Africa and Asia-Pacific. The company has also reinforced its local design capabilities by inaugurating its largest design studio outside France at its Chennai technology center.
Renault’s history in India has been marked by various joint ventures, including past collaborations with Mahindra and the ongoing partnership with Nissan. The potential alliance with JSW would represent a continuation of this strategy, aimed at achieving growth while minimizing operational risks.
The timing of these discussions coincides with broader leadership considerations at Renault. The company’s CEO, Luca de Meo, has prioritised profitability and expanding the company’s footprint in emerging markets, a vision that may shape Renault’s final decision regarding future partnerships in India.
If realised, the collaboration with JSW could give Renault enhanced autonomy in India while allowing JSW to further scale its automotive ambitions, particularly in the electric mobility domain.
