PARIS -- Renault and Nissan will invest $600 million to boost their operations in India, including the planned launch of six new joint models.
The companies described the investment as a starting point that will create 2,000 additional jobs in Chennai, where the alliance has a factory that builds cars for both automakers and an R&D center, they said Monday in a news release.
The collaboration in India is one of five new projects announced by Renault and Nissan as part of their rebalanced alliance, which was announced earlier this month. Under the plan, each will hold a 15 percent cross-shareholding in the other, with full voting rights.
Under the previous alliance structure, Renault held 43 percent of Nissan, which in turn had 15 percent of Renault, but no voting rights on Renault’s board. That was a continuing source of friction between the partners and led to months of negotiations that Renault CEO Luca de Meo described as “intense.”
Nissan will also invest up to 15 percent in Renault’s planned electric vehicle spinoff, Ampere.
Renault currently builds three main models in India, all shorter than four meters long to meet India’s taxation requirements: the Kwid, a minicar; the slightly larger Kiger crossover; and the Triber, which is available with seven seats.
Nissan primarily sells the Kicks, a small SUV, and the Magnite, which is closely related to the Kiger.