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.
Sunil develops content for Market Size Forecasters. A Post graduate mechanical design engineer by qualification, he worked as an intern at the defense lab for one year in the engine design and development department before switching his professional genre. Following his technical writing skills, he ...