Renault to build SUVs in China with Dongfeng

captur 5

Following the Chinese’s government approval of the joint-venture last month, Renault will be producing SUVs at its joint-venture factory with Dongfeng Motor Corp, according to Automotive News China. The French carmaker is aiming to sell locally-made vehicles in the country by 2016.

Renault and Dongfeng will work closely with Nissan in a “golden triangle” to gain synergies in cost and technology, Renault-Nissan CEO Carlos Ghosn told ANC. Nissan already builds cars with Dongfeng in China.

According to the China Association of Automobile Manufacturers, French carmakers accounted for only 3.1% of passenger car sales in the first 11 months of 2013.

By manufacturing cars in China, Renault will be able to reduce reliance on Europe, where half of its global sales are, and where the car market is at a two-decade low. Production in China will also allow the French carmaker to avoid a 25% import duty so it can sell its cars at more competitive prices.

Dongfeng president Xu Ping told ANC that the venture currently only has a license to build SUVs, but the ultimate aim is to produce the full passenger vehicle range in China.

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Jonathan James Tan

While most dream of the future, Jonathan Tan dreams of the past, although he's never been there. Fantasises much too often about cruising down Treacher Road (Jalan Sultan Ismail) in a Triumph Stag that actually works, and hopes this stint here will snap him back to present reality.

 

Comments

  • Sam Loo on Jan 02, 2014 at 7:27 pm

    Another car that can be compared apple to apple with Hyundai and KIA

    Like or Dislike: Thumb up 5 Thumb down 8
  • Say what? 25% tax only! Our impose tax is much higher than that….damn you government….

    Like or Dislike: Thumb up 10 Thumb down 5
  • EnergyAnalyst on Jan 04, 2014 at 12:03 pm

    Based on Captur ? I think a bit of hard sale as Chinese want them big and long —do I sense an elongated Captur ?

    Like or Dislike: Thumb up 0 Thumb down 0
 

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