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

Recommended

Mazda seems too far ahead in Safety technology for having four of its vehicles chosen as the safest on the road. Very recently, the Insurance Institute for Highway Safety has...
by - June 22, 2017
The automotive world is intensely competitive given the growing number of players, but the British car manufacturer is adamantly holding on to its spot. The 2018 Jaguar XF Sportbrake, priced...
by - June 22, 2017
Audi’s all-electric supercar, the R8 e-tron, had been discontinued last October after being in the market for under two years. The electric vehicle was then exclusive to the European market...
by - June 22, 2017
Dodge has made it clear to everyone, including its potential buyers, that the Challenger SRT Demon is a street-legal drag car - that it is unlike any of your ordinary...
by - June 22, 2017
After a number of failed attempts, Tesla finally gets an Arizona dealership license by winning a court battle that allows them to sell directly to consumers. The automotive dealer license...
by - June 22, 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