Renault has confirmed that its non-electric passenger cars will no longer be sold in China after the brand withdraws from its joint venture with Dongfeng Motor Group Co. owing to poor sales. Renault will instead focus on existing joint ventures with Brilliance Jinbei Automotive Company, eGT and the Jiangxi Jiangling group to dish out light commercial and electric vehicles. As per reports, the venture sold only 18,607 cars in 2019, well below its annual capacity of 110,000, and posted an operational loss of around $212 million.
The French carmaker will transfer its 50 per cent stake in the Dongfeng Renault Automotive Company to the native Chinese brand. All “Renault brand-related activities” will be halted across China, although electric Renault cars and light commercial vehicles will continue to be sold. Renault said the change in strategy would focus on its competitive advantages in order to sustain a long-term presence in the Chinese market. “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,” said Francois Provost, Renault’s chairman for the China region.
Renault’s light commercial vehicle business in China will be operated through Renault Brilliance Jinbei Automotive, which plans to roll out five new models before 2023. Conversely, the electric vehicle business will be developed through its existing joint ventures with eGT New Energy Automotive and Jiangxi Jiangling Group Electric Vehicle.
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Nevertheless, Renault will continue to provide after-sales service through Renault dealers for 300,000 customers in China. Further, Renault and Dongfeng will continue to cooperate with Nissan on new-generation engines and components. The companies will also co-operate in the field of hi-tech intelligent connected vehicles. Chinese automobile sales are likely to deteriorate further this year as a result of the coronavirus pandemic, which has escalated pressure on carmakers that were already struggling to establish a significant presence in China. Renault, which had entered the Dongfeng JV in 2014, is one of the few global carmakers to quit a big project in China in recent years.
In India, Renault is expected to launch a sub-4 metre SUV, codenamed HBC and rumoured to be called Kiger, towards the end of the year. Apart from that, the company showcased the Kwid-based City K-ZE EV at the 2020 Auto Expo earlier this year alongside the all-electric Zoe. At the time of the lockdown, the carmaker was in the process of upgrading its model line-up to meet the more stringent BS6 emission norms in tandem with preparing to launch the Triber AMT and Duster turbo-petrol in our market.