Renault has announced that the company will transfer its shares in Dongfeng Renault Automotive Company Ltd (DRAC) to Dongfeng Motor Corporation. DRAC will stop its Renault brand-related activities, however, Renault will continue to provide aftersales service for its 300,000 customers through Renault dealers. Disappointing sales is reported to be the reason for this decision.
The official statement further said that Renault and Dongfeng will continue to work with Nissan on new generation engines and related components supply to DRAC and diesel license to Dongfeng Automobile Co., Ltd.
Renault has another JV with Jinbei for LCV business in China. The Renault Brilliance Jinbei Automotive Co., Ltd. (RBJAC) was launched in December 2017; no changes in this business.
As for the EV business, the development will continue through two existing joint ventures: eGT New Energy Automotive Co., Ltd (eGT) and Jiangxi Jiangling Group Electric Vehicle Co. Ltd (JMEV). Renault has launched the all-electric City K-ZE in China.
Its derivative called Dacia Spring is expected to go on sale in Europe in 2021. JMEV expects to cover 45% of the Chinese EV market in 2022 with 4 core models.
We are opening a new chapter in China. We will concentrate on electric vehicles and light commercial vehicles, the two main drivers for future clean mobility and more efficiently leverage our relationship with Nissan. – Francois Provost, Chairman of China region, Groupe Renault
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