India, Feb. 2 -- A revamped alliance between Renault and Nissan will face an early test in India, where the automakers plan new investment in a bid to close the gap on rivals, people with knowledge of the plans told Reuters.

The automakers reached a deal in principle on Monday to restructure their two-decade partnership by putting both companies on an equal footing in terms of shareholding and with Nissan investing in Renault's new electric vehicle (EV) unit.

The French and Japanese companies announced they had identified key projects on which they would deepen collaboration in India, Latin America and Europe, without elaborating.

In India, the world's fastest-growing car market, the new investment will be led by Nissan, and the compan...