Why Renault Taking Control Of Indian Factory Is Good For Both Renault And Nissan: MD Venkatram Mamillapalle Explains
French carmaker Renault has transformed its operational structure in India by acquiring Nissan's 51 percent stake in their Chennai manufacturing joint venture, creating what managing director Venkatram Mamillapalle describes as a "one chef in the kitchen" approach to decision-making.
The acquisition of Renault Nissan Automotive India Private Limited (RNAIPL) represents a fundamental shift in how the company will operate in the world's third-largest automotive market.
The Chennai facility, which began operations in 2010, has produced over 2.8 million vehicles and 4.6 million engines and gearboxes since inception. Approximately 1.2 million vehicles manufactured at the plant have been exported to more than 100 countries, establishing India as a crucial production hub for both brands.
The facility maintains an annual production capacity exceeding 400,000 units and is supported by a supplier network of nearly 300 local companies. Mamillapalle emphasises that the new ownership structure eliminates the complexity of dual decision-making processes that previously characterised the joint venture.
Faster Decision Making
"There are no two players at RNAIPL trying to take decisions. Any decision will be quick. Product definitions will be quick. Cost reductions will also be a great advantage when you are combining them into one bundle."
The organisational change addresses longstanding challenges that hindered Renault's growth in India. Previously, the company operated through multiple reporting structures to its Paris headquarters, creating bureaucratic delays in responding to local market conditions.
Under the integrated structure, all Indian operations including manufacturing, design, research and development will report to a single leadership team headed by newly appointed CEO Stéphane Deblaise.
Greater Flexibility
The acquisition enables Renault to fully consolidate the Chennai operations into its global financial statements while maintaining production arrangements for Nissan vehicles. This arrangement ensures continuity for both brands while providing Renault with greater strategic flexibility in responding to market opportunities.
Faster Product Development
Renault's current product portfolio in India consists of three sub-4-metre models: the Kwid hatchback, Triber MPV, and Kiger SUV. Sales volumes have declined significantly from 92,268 units in FY21 to 37,900 units in FY25, highlighting the challenges the company faces in a competitive market. The new operational structure aims to address these challenges through faster product development cycles and more responsive market positioning.
Duster Coming Back!
Under the Renault.Rethink transformation strategy, the company has allocated Rs 5,400 crore for product development in India. The investment will support expansion beyond the current sub-4-metre focus to include B-plus segment and C-segment SUVs, marking Renault's re-entry into the over-4-metre category. This diversification addresses previous limitations that restricted the brand to the compact vehicle segment.
Nissan will have its own Duster iterations!
Along with Renault, Nissan will also re-enter the mid-size SUV space with badge-engineered versions of the Duster (5 seat) and Boreal (7 seat). Even before these cars, Nissan will bring in a compact MPV based on the newly launched Renault Triber. The sub-4 meter Renault-badged Triber will be launched later this year, marking the first new Nissan product from the Renault-Nissan collaboration this year.