Renault to focus on electric and commercial vehicles
KUALA LUMPUR: Many automakers are drastically reorganising their business operations due to the global recession fueled by the coronavirus pandemic. Nissan is reportedly planning to become smaller and cut its annual sales target, and now its alliance partner Renault is rescaling its dealing in China.
Renault is ending its joint venture with Dongfeng, and it will sell its share in the company back to the Chinese firm. Also, Dongfeng Renault Automotive Company (DRAC) will stop any activity concerning the Renault brand. In short, Renault will stop selling its cars with an internal combustion engine in China. Also, it will reveal its strategy on the passenger car segment in its mid-term plan.
The automaker will now put its energy on two of its existing joint ventures - Jiangxi Jiangling Group Electric Vehicle Company (JMEV) and eGT New Energy Automotive Company. The later, another collaboration with DRAC together with Nissan, manufactures the K-ZE and will build a European version based on the Dacia Spring concept. Meanwhile, JMEV will develop four core models to capture around 45% of the Chinese EV market by 2022.
Another focus area for the automaker is commercial vehicles, wherein it will continue with 2017 launched Renault Brilliance Jinbei Automotive Company joint venture. It plans to expand its lineup to five core models by 2023 and will also modernise Jinbei models.
As for the aftersales services, Renault said that it would continue to assist its 300,000 customers via its dealers and through synergies with Renault-Mitsubishi-Nissan Alliance. The company will continue to cooperate with Nissan on new-gen engines with components supplied by DRAC. Lastly, Renault and Dongfeng will abandon the partnership in the field of ‘intelligent connected vehicles’.
Also read: Renault to introduce a fully-electric crossover in 2021
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