Renault is to focus on LCV and electric vehicles in China in a preliminary agreement with Dongfeng Motor through which the manufacturer will transfer its shares to Dongfeng.

Dongfeng Renault Automotive Company (DRAC) will stop its Renault brand-related activities.

Renault will continue to provide aftersales service for its 300,000 customers through Renault dealers but also through Alliance synergies. Further development for Renault brand passenger cars will be detailed later within a future new mid-term-plan.

Renault and Dongfeng will continue to cooperate with Nissan on new generation engines such as components supply to DRAC and diesel licence to Dongfeng Automobile. Renault and Dongfeng will also engage in cooperation in the field of intelligent, connected vehicles.

Renault’s LCV market reached 3.3m in 2019. Renault Brilliance Jinbei Automotive (RBJAC), launched in December 2017. Jinbei had nearly 162,000 sales in 2019.

RBJAC is modernising Jinbei models and extending the line-up with a total of five core models by 2023. The joint venture will also export in the future.

EV business will be developed through two existing joint ventures: eGT New Energy Automotive (eGT) and Jiangxi Jiangling Group Electric Vehicle (JMEV).

Renault expects to reinforce its partnership with Nissan and Dongfeng within eGT. A derivative for Europe based on a ‘Dacia Spring’ concept will be sold from 2021. JMEV will cover 45% of the Chinese EV market in 2022, with four core models.

“We are opening a new chapter in China,” said Renault China region chairman, Francois Provost. “We will concentrate on electric vehicles and light commercial vehicles, the two main drivers for future clean mobility and more efficiently leverage our relationship with Nissan.”