Renault-Nissan and Dongfeng Motor Group to create new joint venture to develop electric vehicles in China
Renault-Nissan and Dongfeng Motor Group said today they will set up a new joint venture to develop electric vehicles in China.
The Hubei-based joint venture, eGT New Energy Automotive Co Ltd, will focus on developing and selling electric vehicles in the China market. The electric vehicles will be made at Dongfeng plant, which has a production capacity of 120,000 vehicles a year, from 2019.
eGT will tap electric vehicle technologies and car design expertise from Renault-Nissan, and take advantage of competitive manufacturing costs from Dongfeng, according to the statement published by the companies. The value of the deal has not been not disclosed.
“This marks a deepened and strengthened strategic cooperation between Dongfeng and Renault-Nissan,” said Zhu Yanfeng, chief executive officer of Dongfeng.
Carlos Ghosn, chairman and chief executive officer of Renault-Nissan, said the creation of the new joint venture with Dongfeng will develop competitive electric vehicles for the Chinese market.
“We expect to meet the transformation trend of the market in China, where cars are becoming light, electric, intelligent, interconnected and shared,” Zhu added.
Under the agreement, Renault will hold 25 percent of eGT, Nissan will own 25 percent and Dongfeng the remaining 50 percent.
China is the world's largest market for electric vehicles. In the first seven months of this year, sales of electric vehicles reach 204,000 units, up 33.6 percent year on year, according to data from the China Association of Automobile Manufacturers.