Groupe Renault has altered its business plans in China by transferring its shares in Dongfeng Renault Automotive Company Ltd to Dongfeng Motor Corporation. The was reported to stop its Renault brand-related activities and focus on light commercial vehicles (LCV) and electric vehicles (EV) in the country.
This Thursday, Groupe Renault announced its new business strategy for the Chinese market by building only two of its flagship products: EVs and LCVs. The passenger car market would be catered with a preliminary agreement with Dongfeng Motor Corporation as the company transferred its shares to the latter and stop its Renault brand-related activities.
Renault would also continue the provision of high-quality aftersales services to 300,000 customers through its brand dealers including its Alliance synergies. Further development for its brand passenger cars would be discussed further into the new mid-term-plan Renault.
Renault and Dongfeng would also continue to operate with Nissan on the creation of new generation engines. These projects involve supplying DRAC and diesel licenses to Dongfeng Automobile Co., Ltd. Renault as Dongfeng also engages in innovative cooperation to enhance intelligent connected vehicles.
In 2019, Renault sold 860,000 electric vehicles in China, the largest EV market in the world. The company still hopes to achieve a 25 percent increase in EV sales in the Chinese market by the end of 2030.
Since 2011, Groupe Renault was also considered as a pioneer on EVs and sold about 270,000 units in the world. It enjoys a strong competitive advantage in China since the launching of its Renault City K-ZE, the first joint venture EV car engaged in the A-segment with the best local automakers in China.
The company is also expected to reinforce its partnership with Nissan and Dongfeng to engage in eGT sales and to promote the K-ZE model as a worldwide car. A derivative for the Europe-based "Dacia Spring" concept would reach markets by 2021.
On the other hand, the agile and efficient EV player JMEV was created since 2015 and Renault would continue its support in terms of technology enhancements and quality assurance methods. JMEV would cater to 45 percent of the Chinese EV market in 2020 by selling four core models in the future.
The latest business strategy of Renault in China was said to improve the competitive advantage of the brand and sustain its long-term presence in the country. It was also reported to maximize the synergies with Nissan and the imposition of its new Alliance concept as a "leader-follower."
