Automakers make the most of the growing EV market in China
China’s EV market is exploding, and naturally, more and more automakers want a piece of the pie. Now, Renault-Nissan has paired up with China’s Dongfeng Motor Group to co-develop and sell EVs in China.
Under the new joint venture, both partners will work together to create an EV based on an A-segment SUV platform from Renault-Nissan. The model is expected to enter production at Dongfeng’s plant in Shiyan, central China in 2019.
Renault-Nissan brings to the table its extensive array of EV technologies, while Dongfeng offers up its competitive manufacturing costs and presence in China. Renault-Nissan and Dongfeng will each take a 50-percent stake in the joint venture.
As the world’s largest market for battery electric vehicles, China is an ideal location for automakers to boast their EV offerings. Last year, sales of EVs in China rose 121 percent from the previous year to 256,879 units. And sales have surged again so far this year, with 204,000 EVs sold during the first seven months, according to data from the China Association of automobile manufacturers.
News of the partnership comes on the heels of Ford announcing a joint venture with Anhui Zotye Auto, an automotive company based in China. Both parties aim to produce affordable EVs for the Chinese market and set up a service network for these cars. Before the partnership, Ford had already established a joint venture with Jiangling Motors and Changan Ford.
Source: Nissan, Bloomberg