# Nissan, Renault to invest $600 million to make 6 new models in India
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2023-02-13
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Nissan and Renault to Invest $600M in India for New Models
Meta Description: Nissan and Renault will invest $600 million in India to produce six new models, including electric vehicles and sports utility vehicles, targeting the growing
URL: https://financedigest.com/nissan-renault-to-invest-600-million-to-make-6-new-models-in-indiahtml

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TOKYO (Reuters) -Nissan Motor Co and Renault SA said on Monday they would invest $600 million to make six new models in India, one of three markets in which the two automakers plan to coordinate closely in a revamped alliance announced last week.

The move will help address falling market shares for the Japanese and French companies in a market with rising global importance.

“This investment is very significant not only on products but on technologies like EVs to really capture the growing Indian market, which is the third-largest market in the world, and also to use India as a base for export,” Nissan chief operating officer Ashwani Gupta told reporters.

The two companies said in a statement that each would make three new models in India, all built on joint platforms – components and engineering that can be shared between designs.

Two models would be [electric vehicles](https://www.financedigest.com/tax-credits-for-eu-electric-vehicles-to-dominate-mondays-trade-talks-with-u-s.html "Tax credits for EU electric vehicles to dominate Monday’s trade talks with U.S") (EVs), the companies’ first in India; the others would be sports utility vehicles.

All will be made at the underemployed [car plant](https://www.financedigest.com/stellantis-to-invest-130-million-euros-in-german-plant-for-new-opel-electric-car.html "Stellantis to invest 130 million euros in German plant for new Opel electric car") that the companies jointly own at Chennai, in southern India. They have a [research and development centre](https://www.financedigest.com/new-research-from-impact-com-shows-shifting-power-dynamic-that-puts-influencers-at-the-centre-of-the-brand-consumer-relationship.html "New Research from impact.com Shows Shifting Power Dynamic that Puts Influencers at the Centre of the Brand-Consumer Relationship") there, too.

Under a new structure for their two-decade-old [global alliance announced](https://www.financedigest.com/lumen-research-and-tvision-announce-global-partnership-for-advanced-attention-first-measurement-and-media-buying.html "Lumen Research and TVision Announce Global Partnership for Advanced Attention-First Measurement and Media Buying") on Feb. 6, [Nissan and Renault](https://www.financedigest.com/from-boom-to-bottom-and-now-big-change-renault-and-nissan-reshape-alliance.html "From boom to bottom and now big change: Renault and Nissan reshape alliance") will also cooperate closely in Latin America and Europe.

The two companies together had [around 3% of the Indian market](https://www.financedigest.com/roller-screw-market-ending-up-at-a-valuation-of-around-us-457-5-mn-by-2031.html "Roller Screw Market Ending Up At A Valuation Of Around US$ 457.5 Mn By 2031") in 2022. Unlike Nissan, Renault does not have a significant presence China, the United States and Japan, [raising the stakes](https://www.financedigest.com/chinas-tencent-raises-stake-in-assassins-creed-maker-ubisoft-2.html "China’s Tencent raises stake in ‘Assassin’s Creed’ maker Ubisoft") for its success in India.

Industry-wide sales in India surged 23% last year to 4.4 [million vehicles](https://www.financedigest.com/sainsburys-pays-524-million-for-full-ownership-of-store-investment-vehicles.html "Sainsbury’s pays 4 million for full ownership of store investment vehicles"), overtaking the Japanese market, according to S&P Global Mobility.

The Chennai plant can produce about 500,000 vehicles a year, but last year [Renault sold only 87,000 in India and Nissan](https://www.financedigest.com/nissan-and-renault-agree-to-overhaul-alliance-this-time-as-equals.html "Nissan and Renault agree to overhaul alliance, this time as equals") 35,000.

(Reporting by Satoshi Sugiyama; Editing by Chang-Ran Kim, Edwina Gibbs and Bradley Perrett)


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