Electric Vehicles to be Co-Developed by Renault-Nissan Alliance and Dongfeng Motor Group Co. Ltd. in China
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The market of China is now also progressing in the field of EV’s as the automotive giants Renault-Nissan Alliance and Dongfeng Motor Group Co., Ltd. (Dongfeng) have announced for a new joint venture to co-develop and sell electric vehicles (EV) in China.
Dongfeng Motor Corporation is a Chinese state-owned automobile manufacturer headquartered in Wuhan, China. The company was the second-largest Chinese vehicle maker in 2014 by production volume manufacturing over 3.5 million whole vehicles that year.
The name of the new venture is penned down to eGT New Energy Automotive Co., Ltd. (eGT). The objective of the venture will be to emphasise on the core capabilities of each partner and to utilise the full potential of the Renault-Nissan Alliance electric vehicle leadership, and the resources of Dongfeng in the new energy industry, to comply with the expectations of the Chinese market.
The alliance, eGT, will develop will design a new EV with intelligent interconnectivity, to target their customer base of the Chinese market. The technological expertise of the Renault-Nissan group and the manufacturing costs from Dongfeng.
An agreement between Renault, Dongfeng and Nissan (China) Investment Co., Ltd. has been signed, which gives Renault 25 percent of eGT, Nissan 25 percent and Dongfeng the remaining 50 percent.
The location of the eGT is planned to be based in the City of Shiyan, Hubei Province in central China. The production is planned for the Dongfeng plant of Shiyan which has a production and sales capacity of 120,000 vehicles a year. The initiation of production of the new EV is said to be in the year 2019.
According to the China Association of Automobile manufacturers, China is the world’s largest BEV (Battery Electric Vehicle) market. China is a growing market for the Electric vehicles as the stats show, in 2016, 256,879 BEV were sold in China, up 121 percent from the previous year. The stats for the first seven months of 2017, production of BEVs reached 223,000 units and sales 204,000 units, representing an increase of 37.8 percent and 33.6 percent respectively. The conglomerates have high expectation from this alliance as they aim to tap the potential of the developing Chinese segment of the market.