Renault-Dongfeng JV gets green light from Chinese regulator

Article by Anita Panait, on December 6, 2013

China’s National Development and Reform Commission has approved a joint venture between Renault and Dongfeng Motor Group aimed at building and selling cars in the country. The 50-50 venture – to be known as Dongfeng Renault Automotive -- is expected to produce 150,000 vehicles annually and is also expected to build and assemble engines.

The venture will also consider producing key engine components. Renault said in a statement that the venture will help it boost its scale in the Chinese market.

A Chinese media report said in July that the joint venture plans to commence producing SUVs and minivans in 2014. The CHY7.76 billion ($1.3 billion) venture was announced by Renault in 2012 along with plans to build its own cars in China.

Renault currently sells about 50 percent of its offerings in Europe and aims to cut its dependence on the region. Renault seems late in entering China compared to rivals Volkswagen and PSA/Peugeot-Citroen.

Since imported vehicles are imposed with a 25 percent tariff, producing locally would be the next viable option to compete in China.

Renault has sold fewer than 30,000 units in China this year, compared to over 1 million vehicles sold by Japanese partner Nissan. Fellow French carmaker and rival PSA currently operates a joint venture with Dongfeng in China and is holding talks for the Chinese carmaker to take holdings in PSA.

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

The Shooting Brake is probably the least rendered body shape in the automotive world. But it’s also the most sought after design among car nuts for its unique, old-fashioned charm....
by - January 23, 2017
Perhaps to make the upcoming Valentine’s day more special, Tinder dating app and Ford UK have cooked up a special blind date for all the single blokes and chicks in...
by - January 23, 2017
2017 is undeniably a very busy year for BMW. After introducing the new 4-Series, the German automaker has just released several new updates. In relation to this, BMW is also...
by - January 23, 2017
The renowned Shelby Super Snake is now 50 years old! As we greet the Super Snake a “happy birthday” or a “happy anniversary,” Shelby itself is celebrating half a century...
by - January 23, 2017
Nearly a year after the Subaru XV Concept was unveiled at the 2016 Geneva Motor Show in Switzerland, this SUV study is making its North American debut at the 2017...
by - January 23, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries