The Renault brand leaves the Chinese car market

The Renault brand leaves the Chinese car market

April 15, 2020 0 By autotimesnews

In China, the French brand had a joint venture with a local Dongfeng concern.

On Wednesday, April 15, it became known that the French brand Renault began the process of leaving the Chinese car market. After the difficult economic situation due to the spread of the coronavirus epidemic, many expected that automakers would have problems. Recall that in 2019 Renault dealers were able to sell 179,600 new cars in France.

In absolute terms, these are very good numbers, but in 2018 the result was much better. These figures relate to the sales of the machines, jointly manufactured with Dongfeng. At the same time, if you talk about all the products of Dongfeng Renault Automotive Company, the results here are even more dismal – “minus” 69%.

Against the background of the crisis, Renault has decided to get rid of assets that are not profitable, so in the near future 50% of the shares will be transferred to Dongfeng, which will become the sole owner of the company.

┬áNote that after the closure of the joint venture with Dongfeng, Renault will have three more joint ventures in China. The first is the Renault Brilliance Jinbei Automotive, which is doing slightly better, and the other two – eGT New Energy Automotive and Jiangxi Jiangling Group Electric Vehicle – are engaged in the development of electric cars, which is quite a promising area, especially in China.