Renault Moves to New Strategy for China

Renault Moves to New Strategy for China

Renault Group will focus on light commercial vehicles (LCV) and electric vehicles (EV) in China.

Renault Group will transfer its shares in Dongfeng Renault Automotive Company Ltd (DRAC) to Dongfeng Motor Corporation. DRAC will stop its activities associated with the Renault brand.

- Renault Brilliance Jinbei Automotive Co., Ltd., with the benefit of the know-how from Jinbei's Renault collaboration, the Renault Group LCV activities. (RBJAC) will be executed over.

Boulogne-Billancourt - Renault Group announced its new strategy based on two main product groups, Electric Vehicles (EV) and Light Commercial Vehicles (LCV) for the Chinese market. Within this new strategy, Renault Group's activities in China will be conducted as follows. .

About the Internal Combustion Engine (ICE) Passenger Car Market:

Renault Group has signed a share pre-transfer agreement to transfer its activities on internal combustion engine passenger vehicles to Dongfeng Motor Corporation. DRAC will stop its activities related to the Renault brand after this agreement.

Renault Group will continue to provide high-quality after-sales service to 300.000 customers in China through the cooperation of Renault dealers and the Alliance.

Details of other developments for Renault brand passenger vehicles will be included in the new medium-term future plan of the Renault Group.

In addition, Renault and Dongfeng provide parts to DRAC and Dongfeng Automobile Co., Ltd. will continue to cooperate with Nissan on new generation engine issues such as diesel license to the company. Renault and Dongfeng will also cooperate innovatively in the field of smart connected vehicles.

About the Light Commercial Vehicles (LCV) market:

Increasing urbanization speed, growing e-commerce, urban transportation plans and flexible usage habits of the customers are among the prominent features of the rapidly changing light commercial market in China. This market, which reached 2019 million in 3,3, is expected to maintain its upward stability.

Renault Brilliance Jinbei Automotive Co., Ltd., which started operations in December 2017. (RBJAC) is the reliable partner of Renault Group's operations in light commercial vehicles in China.

Renault Group is the market leader in Europe with its sales volume in the field of electric light commercial vehicles as well as light commercial vehicles.

On the other hand, Jinbei is a well-established brand in China with 2019 million customers and approximately 1,5 sales in 162.000. While RBJAC modernizes Jinbei models with Renault expertise and technologies, it expands its product line with a total of 2023 main models for 5. Export in the future is also among the plans of the company.

About the Electric Vehicle (EV) Market:

With 2019 electric vehicles sold in 860.000, China is by far the largest electric vehicle market in the world. Electric vehicle sales are expected to reach 2030 percent of the Chinese market by 25.

Being a pioneer in the field of electric vehicle production, Renault Group has sold 2011 electric vehicles worldwide since 270.000. This gives Renault Group and its partners a strong competitive advantage in China, as evidenced by the successful launch of Renault City K-ZE, the first electric car to compete with the best local car manufacturers in the A segment.

Renault Group foresees to make K-ZE a preferred vehicle worldwide by strengthening its partnership with Nissan and Dongfeng within eGT. A model based on the “Dacia Spring” concept for the European market will be available from 2021 onwards.

JMEV has been known as an agile and productive player in the electric vehicle industry since its establishment in 2015. With the support of Renault's quality and technology, JMEV is expected to dominate 2022 percent of the Chinese electric vehicle market with four main models in 45.

The new Chinese strategy will strengthen Renault's competitive advantages and support the company's long-term stay in the Chinese market and maximize its synergy with Nissan within the Alliance's new “leader-follower” concept.

We open a new page in China

"We will concentrate on electric vehicles and light commercial vehicles, two of the main drivers of clean transportation of the future, and we will benefit from our relationship with Nissan more efficiently," Groupe Renault China Region Chairman Francois Provost said.

About Groupe Renault

Groupe Renault, which has been producing automobiles since 1898, is an international group operating in 134 countries and sold about 2019 million vehicles in 3,8. Today, it operates with 40 production facilities worldwide and more than 12.700 employees at 180.000 sales points. Groupe Renault uses international development to respond to the major technological challenges of the future and to follow its own profitable growth strategy. For this, it is powered by the complementary nature of the five brands (Renault, Dacia, Renault Samsung Motors, Alpine and LADA), electric vehicles and the partnership it has established with Nissan and Mitsubishi Motors. With a team that is 100% Renault and focused entirely on the Formula 2016 World Championship since 1, Renault operates in the field of motorsport, a true innovation and recognition vector.

About Groupe Renault's Activities in China

Renault owns 50% of the capital of DRAC and JMEV and 49% of the capital of RBAJ. 50% of eGT's capital belongs to Alliance and 50% to Dongfeng.

Source: hibya news agency

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