Renault focussing on EVs in China

Groupe Renault will switch from making internal combustion engine (ICE) passenger vehicles to electric in a newly announced China strategy.

“We are opening a new chapter in China. We will concentrate on electric and light commercial vehicles (LCVs), the two main drivers for future clean mobility and more efficiently

leverage our relationship with Nissan,” Groupe Renault China region chairman Francois Provost says.

China’s automotive sales have slowed and are expected to worsen following the COVID-19 pandemic, especially for ICE vehicles.

Renault plans to transfer its shares in Dongfeng Renault Automotive Company (DRAC) to Dongfeng Motor Corporation, DRAC then stopping its Renault brand-related activities.

Mainly electric LCVs will be done through Renault Brilliance Jinbei Automotive Co. (RBJA), with EV business developed through the two existing joint ventures – eGT New Energy Automotive Co. (eGT) and Jiangxi Jiangling Group Electric Vehicle Co. (JMEV).

Renault says it will continue to provide aftersales service for its 300,000 customers through Renault dealers but also through Alliance synergies.

Details about further development for Renault passenger cars will be provided later.

Renault and Dongfeng will continue to cooperate with Nissan on new generation engines like components supply to DRAC and diesel license to Dongfeng Automobile Co.

Both Renault and Dongfeng will also cooperate on intelligent connected vehicles.

China’s LCV market is rapidly changing through increasing urbanisation, e-commerce extension, inner-city transportation schemes and versatile customers uses, Renault says.

It reached 3.3 million in 2019 and is expected to continue steady growth.

Groupe Renault says it is leading the LCV market in Europe in sales volumes, as well as sales of electric LCVs.

RBJAC is modernising Jinbei models and extending the line-up with five core models by 2023, also planning to export them.

China is the world’s largest EV market with 860,000 sold there in 2019 and EV sales likely to reach 25% of the Chinese market by 2030.

Groupe Renault has sold nearly 270,000 EVs globally in since 2011

It plans to make the joint venture Renault City K-ZE a global car and will also sell a version of it under the Dacia Spring brand in Europe from 2021.

JMEV will cover 45% of the Chinese EV market in 2022 with four core models.