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.

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.