Nissan Eyes $640M from Renault Stake Sale to Fund EV Push

Nissan Motor is reportedly preparing to sell its entire 5% stake in French automaker Renault, a move that could raise approximately 100 billion yen ($640 million), according to Japan’s Nikkei business daily. The decision reflects Nissan’s strategy to strengthen its financial position amid tough global market conditions and intensifying competition in the electric vehicle (EV) sector.

The sale comes as Nissan seeks to accelerate investment in next-generation vehicle development, particularly in EVs and autonomous technologies. By liquidating its holdings in Renault, the Japanese automaker aims to redirect resources toward innovation and future growth. The potential sale also signals a shift in the long-standing Renault-Nissan alliance, which has recently undergone restructuring to give both companies more strategic flexibility.

The Renault stake, once symbolic of a tight-knit partnership, has diminished in strategic importance following a January agreement to rebalance cross-shareholdings. Under the revised terms, Renault had already reduced its own stake in Nissan to 15%, matching Nissan’s current holding in Renault.

Nissan’s move aligns with its broader transformation plan, which includes cost-cutting, a focus on profitable markets, and a push to electrify its global lineup. The company has committed to launching several new EV models by 2030, as automakers race to meet tightening environmental regulations and growing consumer demand for sustainable transportation.

The funds from the stake sale would offer a much-needed boost to Nissan’s R&D budget, supporting its goal to regain competitive edge and profitability in a rapidly evolving auto landscape. While no official announcement has been made, the reported move underscores Nissan’s urgency in adapting to industry shifts and prioritizing long-term innovation over legacy equity ties.