The Renault-Nissan Alliance turned thirteen in March, 2013. Created in 1999, it was developed over the years with respect for the cultures and identities of each of the two groups, enabling it to become the longest-running transnational partnership between major carmakers in the automotive industry. Presenting the two partners with a crucial competitive advantage, and to Renault in particular, helping it gain scale and critical mass of a major international carmaker in a globalized and ultra-competitive automotive industry, the alliance has come to rank as the world’s fourth-ranking carmaker in terms of sales, behind Toyota, General Motors and Volkswagen. As part of the alliance, despite recession in Europe and slowing sales in China, global sales of Renault rose to the record level of 8.1 million vehicles (8,097,197 units) in 2012. The Renault group sold 2,550,286 units worldwide, Nissan sold 4,940,133 vehicles, and AVTOVAZ sold 606,778 vehicles.
This represents 10% of all new cars sold across the world. Through the alliance, Renault has also been able to generate a strong presence in markets like India. While the tactics are different in each region, according to the preexisting presence of Renault or Nissan and the opportunities for partnerships with carmakers like AVTOVAZ in Russia and Dongfeng in China, India happens to be the alliance’s most ambitious shared platform project.
The Chennai plant, inaugurated in March 2010, was the first Alliance-dedicated plant and enabled Renault to produce locally and penetrate the Indian market. Renault and Nissan are aiming for a 10% market share in India in 2016. Of this, Renault alone is aiming for a ambitious 5%. In Russia, the AVTOVAZ partnership has enabled Renault to continue growing in the market. The new “B0” production line that went into operation in April 2012 at the Togliatti plant is used to manufacture Renault, Nissan and LADA vehicles. It doubles the Renault group’s production capacity in Russia. Renault and Nissan, with their partner AVTOVAZ, are aiming for a 40% market share in 2016, Renault for an 8% market share. In China, Renault is working with Dongfeng, Nissan’s Chinese partner for over 10 years, to set up a plant by 2016.
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