Renault confirmed at the Beijing show earlier reports that it is to form a joint venture with Dongfeng. The company, China’s second largest car maker, already has a joint venture with Renault’s alliance partner Nissan.

The joint venture factory will have an annual capacity of 200,000-300,000 cars, Katsumi Nakamura, Renault’s director of China business operations, told reporters at the show. It is expected to start production from 2016 although Nakamura refused to comment on a timeframe.

“We signed a memorandum of understanding in March,” Nakamura said, adding the two sides still have to reach a final agreement before submitting the plan for official approval. 

“We’re going to start with one vehicle and build up,” he said.

Reports suggest that the partners will build an SUV and, eventually, an electric car.

Renault launched a Samsung-built sedan called the Talisman at Beijing.