Renault and Nissan, the automotive alliance partners, have established a new research and development joint venture in Shanghai, China, called Alliance Automotive Research and Development (Shanghai) but which will be referred to as Alliance Innovation Lab Shanghai (AIL-SH).

Renault and Nissan each hold 50% of this new entity which will conduct research and development focusing on autonomous drive, connected vehicles and electric vehicles.

Technology developed by the innovation hub potentially could be applied to Renault and Nissan vehicles sold both in China and worldwide.

"China is not only the world's largest auto market but is also at the leading edge of new technology which will change the face of future mobility," said Takao Asami, Alliance SVP, research and advanced engineering.

"From a strategic point of view, it is vital that the alliance has a development hub in this thriving market, where it sold more vehicles than anywhere else in 2018. The knowledge and skills obtained here will be leveraged not just inside China but globally, helping to contribute to the demanding objectives of our 2022 mid-term plan."

The alliance plans 12 new zero-emission electric vehicles by 2022 plus 40 vehicles with different levels of autonomy and over 90% connected.

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The plan also includes a commitment to operating robo-vehicle ride hailing mobility services.

Not uncoincidentally, the announcement came ahead of the Shanghai auto show opening this week.