Renault establishes electric car joint venture in China

Renault establishes electric car joint venture in China-establishes

French automaker Renault and Jiangling Motors Corporation Group (JMCG) have announced the official establishment of their joint venture to further promote the development of the electric vehicle industry in China, following an initial agreement in late 2018. Renault will increase its share capital by RMB 1 billion to become a major shareholder in JMCG subsidiary JMEV with a 50 percent stake. JMEV has already completed the business license registration.

This collaboration is part of the overall strategy of JMCG and Renault. This joint venture allows Groupe Renault to expand its influence in the Chinese electric car market, while allowing JMCG to integrate and utilize more resources to further fuel its rapid growth in the future.

“China is a key market for Groupe Renault. Partnering with JMCG in EV business will support our growth plan in China and improve our EV capabilities. As a pioneer and leader in EVs in the European market, we will leverage our experience in EV R&D, production, sales and service in China as well.”. – Francois Provost, Senior Vice President Groupe Renault and President of the China Region

JMEV was founded in 2015 and is a subsidiary of JMCG. After its establishment, JMEV quickly obtained certification for manufacturing battery electric passenger cars and made rapid breakthroughs in building its research capacity, supply chain, production capacity and market deployment, creating a complete value chain ecosystem of R&D, production, supply and sales was, both for complete vehicles and important components. The company has become a major player in China’s electric vehicle market and is led by a young and energetic team, Renault said in a statement.

“JMCG follows the concept of openness and cooperation and is one of the first domestic companies to introduce international strategic partners. By partnering with Groupe Renault, JMEV will be able to take its competitiveness to a new level and enter the Chinese electric car market.— Qiu Tiangao, Chairman of JMCG

Renault has been making cars since 1898 and is now an international multi-brand group that sold almost 3.9 million vehicles in 134 countries in 2018, and has 36 production sites and 12.700 points of sale more than 180.000 employees. In order to meet the major technological challenges of the future while continuing its profitable growth strategy, Groupe Renault is focusing on international expansion. For this purpose, the company uses the synergies of its five brands (Renault, Dacia, Renault Samsung Motors, Alpine and LADA) as well as the alliance with Nissan and Mitsubishi Motors.

JMCG is a Chinese automobile manufacturer with over 400.000 vehicles sold. The Group’s business scope includes the development, manufacture and sale of passenger cars, commercial vehicles and essential vehicle components, as well as automobile imports and exports, automobile financing and other businesses.

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