Renault-Nissan: India, a strategic choice to demonstrate the vitality of their Alliance

Finally patched up, Renault and Nissan wasted no time in defining the terms of their offensive on the world’s third-largest market. On February 6, the members of the Renault-Nissan-Mitsubishi Alliance offered new bases for their collaboration. Neither marriage contract nor divorce agreement, this framework agreement is intended to be a “catalogue of clarified and simplified rules”, from which a “plethora of chords technical, industrial and commercial collaborations”, summarizes Jean-Dominique Senard, Chairman of the Alliance and Chairman of the Board of Directors of Renault. At the top of the list of these “operational projects with strong value creation” is the Indian market, whose growth rate is whetting everyone’s appetite.

In response to analysts who are lost in conjecture as to how to qualify the new Alliance, the general manager of Renault Luca de Meo retorts that “the best demonstration of the vitality of the Alliance will be provided by the execution of the projects, the one after another”. Abundant in his sense, Nissan boss Makoto Uchida bluntly advises them to “forget the past” and accept the idea that “Renault, Nissan and Mitsubishi are inventing”a new form of collaborationwhich does not correspond to an established definition”.

Renault and Nissan will increase production and R&D activities in Chennai, India

It is with this advice in mind that we should analyze the terms of “the new long-term vision for India” shared by Renault Group and Nissan Motor Corporation. It’s not so much the Renault-Nissan-Mitsubishi Alliance as two independent — albeit associated — manufacturers that are planning to invest “about 600 million dollars”, the equivalent of 562 million euros or 53 billion Indian rupees for “the creation of 2,000 additional jobs at the Renault Nissan Technology & Business Center in Chennai”. This reaffirmation of the identity of each of the two manufacturers will no doubt fuel the rumor of their divorce.