Renault inks deal with Jiangling on NEVs

GROUPE Renault and China's Jiangling Motors Co Group announced a deal to cooperate on electric vehicle yesterday, as the French automaker aims to become one of major new-energy vehicle players in the fast-growing Chinese market.

According to the agreement, Groupe Renault will hold a significant stake in JMEV, a subsidiary of Jiangling Motors Co Group.

The agreement will be reviewed by Chinese authorities during first half of 2019. Renault also said more details will be released soon.

JMEV, established in 2015, is an electric carmaker in Nanchang, Jiangxi Province. The company produced and sold around 38,000 electric cars in 2017. JMEV said it expects to sell about 50,000 electric cars this year.

China is actively promoting the development of new-energy vehicles. In the first 11 months of this year, NEV sales surged 68 percent year on year to 1.03 million vehicles, according to data released by the China Association of Automobile Manufacturers. 

Foreign automakers see tremendous opportunity in China's booming NEV sector and are actively courting Chinese firms as partners.

Renault said that through this move, it aims to establish a solid position in the growing and high-potential market for electric vehicles.

The French carmaker said it has a leading electric vehicle business in Europe and this new deal will further promote its future in China's NEV sector.