Renault will likely break into the Chinese market via a joint venture with local manufacturer Dongfeng but it does not expect to be one of the top players in the world’s fastest-growing major car market, a top company executive told the Reuters news agency.
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Executive vice president Georges Douin, who is responsible for Renault’s development outside western Europe, reportedly reiterated that Renault was in talks to establish a joint venture with Dongfeng, which already makes cars with the French firm’s Japanese partner Nissan.
But he said competition in the booming market, which some experts say is starting to overheat, would be tough, the report noted.
“We are in talks with Dongfeng. If that doesn’t work we’ll have to look elsewhere although that is the obvious choice,” he told Reuters, adding: “We are very conscious though that we are fighting against strong players” and the company would not swamp the market.
Douin reportedly said the company’s new so-called €5,000 car, due to be launched this year for sale in emerging markets, would likely form a key part of the company’s strategy in China.
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By GlobalDataReuters noted that Renault chairman Louis Schweitzer has said he will announce his company’s plan for entering China next month.
