Renault-Nissan Alliance and Dongfeng Motor Group Co., Ltd. partnership announced
The Renault-Nissan Alliance and Dongfeng Motor Group Co., Ltd. announced a new joint venture to co-develop and sell electric vehicles (EVs) in China. The venture, eGT New Energy Automotive Co., Ltd., is expected to design an interconnected EV. It will be jointly developed by the Renault-Nissan and Dongfeng on an A-segment SUV platform of the Renault-Nissan Alliance.
“The establishment of the new joint venture with Dongfeng confirms our common commitment to develop competitive electric vehicles for the Chinese market,” said Carlos Ghosn, Chairman and Chief Executive Officer of the Renault-Nissan Alliance. “We are confident to meet the expectations of the Chinese customers and to strengthen our global electric vehicle leadership position.”
“This project is the result of a joint effort to develop electric vehicles for the Chinese market, by the 'Golden Triangle' formed by Dongfeng, Renault, and Nissan, with an innovative business model,” said Zhu Yanfeng, Chairman of Dongfeng. “We expect to meet the transformation trend of the market in China; where cars are becoming light, electric, intelligent, interconnected, and shared. This is also testimony of a deepened and strengthened strategic cooperation between the three parties.”
Renault, Dongfeng, and Nissan (China) Investment Co., Ltd. have signed an agreement to set up the new joint venture. Renault will hold 25% of eGT, Nissan 25%, and Dongfeng the remaining 50%.
The plan is to base the newly formed eGT in the City of Shiyan, Hubei Province in central China. The electric vehicle will be produced at the Dongfeng plant of Shiyan, which has a production and sales capacity of 120,000 vehicles a year. Production of the new EV is forecast to begin in 2019.
According to the China Association of Automobile Manufacturers, China is the world’s largest BEV market. In 2016, 256,879 BEV were sold in China, up 121% from the previous year. In the first seven months of 2017, production of BEVs reached 223,000 units and sales 204,000 units, representing an increase of 37.8% and 33.6%, respectively. The new move aims to tap the potential of the fast-growing Chinese segment of the market.