The Renault-Nissan Alliance and Dongfeng Motor Group (Dongfeng) announced a new joint venture for developing and selling electric vehicles in China. The JV, called eGT New Energy Automotive, will see Renault and Nissan have 25 percent share each while Dongfeng will have 50 percent. eGT is expected to start production of new EVs by 2019.
The newly formed eGT New Energy Automotive, based in Shiyan, Hubei Province, will produce EVs at the Dongfeng plant that can produce 120,000 vehicles a year. The JV aims to leverage the core competencies of each partner and harness the full potential of the Renault-Nissan Alliance and their EV leadership.
A new EV from the joint venture of Renault-Nissan and Dongfeng will be based on Renault-Nissan’s A-segment SUV platform.
The joint venture is expected to design a new EV with intelligent interconnectivity that will be jointly developed by the Alliance and Dongfeng on Renault-Nissan’s A-segment SUV platform. It will draw on EV technologies and cost-effective car design experience from the Alliance, along with the competitive manufacturing costs provided by Dongfeng.
“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 CEO, Renault-Nissan Alliance.
Commenting on the partnership, Zhu Yanfeng, chairman, Dongfeng, said, “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. We expect to meet the transformation trend of the market in China; where cars are becoming light, electric, intelligent, interconnected and shared.”
According to the China Association of Automobile Manufacturers, China is the world’s largest BEV market. In 2016, 2,56,879 BEVs were sold in China, up 121 percent from the previous year. In the first seven months of 2017, production of BEVs reached 2,23,000 units and sales hit the 2,04,000 mark, representing an increase of 37.8 percent and 33.6 percent respectively.