More on expansion of Renault-Nissan alliance capacity in China: Renault has inked a memorandum of understanding (MOU) with Dongfeng Motor Group on setting up a joint venture, an insider familiar with the issue was quoted as saying by Xinhua news agency.

The source declined to elaborate.

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Renault had said earlier last year that it expected to start producing cars in China in 2014 at the earliest.

Though global sales hit a record-setting 2.72m vehicles in 2011, Renault sales in China reached only 24,000 units.

Dongfeng Motor is China’s second largest automaker in terms of sales and has JVs with Nissan.

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