Renault-Nissan to penetrate Chinese electric car market, ties up with automaker Dongfeng
Category: #world  By Pankaj Singh  Date: 2017-08-30
  • share
  • Twitter
  • Facebook
  • LinkedIn

Renault-Nissan to penetrate Chinese electric car market, ties up with automaker Dongfeng

With regard to the favorable initiations taken by Beijing government to improve air quality, Renault-Nissan has signed an agreement with the Chinese automaker Dongfeng to develop electric vehicles. With this joint venture, Renault-Nissan Alliance has entered into world’s largest market for electric vehicles. The government’s ancillary support with reference to technological innovations is one of the added benefits to the automakers to strengthen their position in China electric vehicle market.

Apart from Renault-Nissan, the other giants in automotive industry such as Volkswagen, General Motors, Ford, Daimler, and Tesla have also signed joint venture deals with Chinese automakers under new brand names. Renault-Nissan and China’s Dongfeng are planning to develop electric vehicles under their newly formed own brand eGT New Energy Automotive Co. This newly formed enterprise is expected to launch their first electric mini SUV by 2019. The extensive years of being in the business coupled with high-grade expertise of the French-Japanese automaker is likely to favor Dongfeng, as this company is already in the business of developing conventional vehicles with Renault-Nissan.

This strategic venture is a key breakthrough for Renault to garner professional success in China. As per the policy of the Chinese government, any foreign brand should sell their EV models under the Made-in-China brand. If reports are to be believed, the National Development and Reform Commission (NDRC), which is one of the top regulators in China, has rejected Volkswagen’s application to sell electric vehicles manufactured through a joint venture with the Chinese carmaker JAC under their SEAT brand. Though, Renault and Nissan will manufacture the vehicles under the tag line of ‘Made-in-China’, it has been forecast that they will accrue significant remuneration in China automotive market, as each of them own a quarter share of their partnership with Chinese automaker.

Nissan Alliance’s Chairman Carlos Ghosn stated that their new joint venture with Dongfeng is a live example of the organization’s commitment toward the development of modern electric vehicles for the Chinese automotive market. He also added that the company is likely to launch the product as per the customer’s expectations. This strategic collaboration is slated to become beneficial for Renault-Nissan to strengthen their leadership position in global electric vehicle industry as well.

As per the statistics, after the declaration of the Beijing Government’s policy for zero-emission vehicles, nearly 204000 electric vehicles have been sold in first seven months of the year. This number is likely to grow exponentially over the years ahead, owing to the favorable support of the government to the companies in terms of incentives and subsidies as a part of their pro-electric stance. Experts claim that China’s electrification program has indeed changed the overall goals of many of the automakers.



About Author

Pankaj Singh

Email: [email protected]   

Pankaj Singh

Pankaj Singh Develops content for Market Size Forecasters, Algosonline, and a couple of other platforms. A Post Graduate in Management by qualification, he worked as an underwriter in the UK insurance domain before deciding to switch his field of profession. With exp...

Read More

More News By Pankaj Singh

Amazon cleared by UK regulators to buy 16% stake in Deliveroo
Amazon cleared by UK regulators to buy 16% stake in Deliveroo
By Pankaj Singh

The eCommerce giant Amazon has been granted permission to purchase a minority stake in the U.K-based food delivery start-up Deliveroo. The firm was able to convince regulators that the deal would not be detrimental to ...

Australia retail industry in disarray with major slump in sales
Australia retail industry in disarray with major slump in sales
By Pankaj Singh

Australia’s retailers are reportedly facing a huge crisis of sorts, with the latest data depicting a massive fall in sales volumes. As the nation’s second-largest state enforces a lockdown to fight the ongo...

Leedy Dental Reveals Renovations and New Dental Implant Center
Leedy Dental Reveals Renovations and New Dental Implant Center
By Pankaj Singh

The Leedy Dental, the U.S-based comprehensive dental practice with expertise in full mouth rehabilitation and implant dentistry, has reportedly completed renovation work in its practice in Abilene, TX.  

...