The revamped Renault-Nissan alliance is set to make a significant investment in India, as the automakers aim to narrow the gap with competitors in the rapidly growing market. Under the new partnership structure, Nissan will lead the investment efforts, with both companies focusing on collaboration and cross-badging to increase plant utilization rates and reduce costs.

The alliance partners have reached a preliminary deal to restructure their long-standing partnership, placing both companies on equal footing in terms of shareholding. As part of the restructuring, Nissan plans to invest in Renault’s electric vehicle unit, Ampere.

In India, the world’s fastest-growing car market, the renewed investment will be spearheaded by Nissan. The companies are evaluating vehicle options that could be launched from 2025, including a potential reboot of Renault’s popular Duster SUV. The strategy also involves a return to sharing and cross-badging vehicles, which would allow the alliance to maximize plant utilization and achieve cost efficiencies. For instance, the Duster SUV is being considered for launch under both the Nissan and Renault brands.

While specific details of the investment plan have not been disclosed, sources indicate that the companies are closely evaluating projects and collaborations in India, Latin America, and Europe. The new strategy, expected to be announced in the coming weeks, reflects the alliance’s ambition to leverage market potential and enhance their competitive position.

The move highlights the increasing pressure on automakers to invest in electric vehicles, automation, and software services, despite the current dominance of gasoline cars over EVs, especially in emerging markets like India. The Indian market, which surpassed Japan to become the world’s third-largest car market, experienced a remarkable 23% surge in sales in 2022, reaching 4.4 million vehicles.

The Renault-Nissan alliance’s renewed focus on India underscores the growing significance of the market and their determination to tap into its potential. By collaborating and leveraging cross-badging strategies, the alliance aims to optimize resources, drive growth, and enhance competitiveness in one of the most promising automotive markets globally.