JSW And Renault In Talks To Build Cars In India: New Details
JSW already has a presence in the automotive sector, as it has an ongoing partnership with MG motor India. The conglomerate could also play a key role in Renault India's revival. It is said to be in early discussions with Renault SA for a potential joint venture. The French carmaker is reportedly restructuring its ties with Nissan, as part of the revival process. If the discussions bear fruits, JSW could form its second major automotive alliance.
Renault has explored strategic partnerships in the past as well. Over the years, we saw it joining hands with the likes of Mahindra and Nissan. The discussions with JSW are known to be in their preliminary stage now. Renault wishes to operate more independently in India, and these are part of this vision. In the broader picture, it will buy out Nissan's stake in their Chennai factory.
In March, Renault officially announced its intention to buy out more of Nissan's shares in their JV ( Renault Nissan Automotive India Private Ltd (RNAIPL))along with the factory. Nissan owns 51 per cent of the JV. Acquiring this will give Renault complete authority and the freedom to operate as an independent body.
Helmed by industrialist Sajjan Jindal, JSW Group currently holds 35 per cent stake in MG Motor India. It intends to expand its foothold further in the automotive and electric mobility segments, and the Renault JV could help in the same. Renault's current market footprint, however, is rather modest. It posted sales of 38,000 vehicles in FY25, in the domestic market. The exports to African and Asia-Pacific markets continue to be strong.
This also brings us to an important assumption. Even if Nissan and Renault announce a complete dissolution of their joint venture, it is likely that the Oragadam factory will continue to be used by both parties. Its modest sales will likely make it financially challenging to operate the plant only for its own needs, as it has a production capacity of 4.8 lakh units per year.
Renault intends to bank its revival journey on resurrections of popular nameplates like the Duster. If given a proper price and market entry, the Duster and the seven-seater Boreal could rise to acceptance.
If there is great demand for these vehicles, it could probably lead to a time when Renault could profitably operate the Chennai plant for its own needs alone. From what we know, the French carmaker seems to have more interesting products lined up for the future.
In addition to the five and seven-seater Duster, the facelifted versions of popular models like the Triber and Kiger are also on the cards. If things turn out well, Renault could see its sales double in the next 2-3 years.
Sajjan Jindal's Ambitious Mobility Dreams
Previously Jindal had revealed his ambitious dreams about the automotive business. JSW currently holds 35 percent in MG Motor India. Jindal intended to grow JSW's share in and control over MG and its operations.
He wanted to increase JSW's share to 51 percent and further wanted Indian investors to hold up to 65%. Jindal had revealed these ambitions in an interview with Money Control. If this doesn't happen, he said he will look for other options. The end goal was to grow in the automotive space.
A partnership with Renault will give JSW the foothold in the car industry that it dreams of. Renault is a company with solid engineering depth and a solid pedigree. It will give JSW a solid spot in India's car scene.