Renault has announced that in the future, it will concentrate on electric vehicles and light commercial vehicles in the Chinese market. The French automaker has withdrawn from its joint venture with Dongfeng, under which it had built ICE vehicles, including the Captur, Kadjar and Koleos SUVs, in Wuhan.
The Renault Group set up joint ventures to produce EVs and light commercial vehicles in the Chinese market in 2017 and 2018. Now the French group says it has “cut [its] losses with the business of fossil-fueled private vehicles in China.” (If we’re parsing this correctly, the group will still sell ICE-powered commercial vehicles, but not passenger vehicles, in China.)
The French automaker will continue to produce EVs with its JV partners eGT New Energy Automotive (which builds the City K-ZE) and Jiangxi Jiangling Group Electric Vehicle (JMEV). Renault and Dongfeng have not entirely severed their connection: Dongfeng holds 50 percent of the shares in eGT New Energy.
“We are opening a new chapter in China,” says Francois Provost, Renault’s China Region Chairman. “We will focus on electric vehicles and light commercial vehicles, the two main drivers of future clean mobility, and more efficiently leverage our relationship with Nissan.”
Source: Renault via Electrive