The french multi-national company Renault has confirmed that it will end the joint-venture of non-electric passenger vehicle with Dongfeng in China.
Renault has decided to sell out the 50 percent of the stakes to the native Chinese automobile company.All the “Renault based activities” has been halted across the Wuhan.Although the electric vehicles and light commercial vehicle will continue to sell under the joint-venture with Brilliance Jinbei Automotive Company, eGT and the Jiangxi Jiangling group.The Groupe Renault will transfer its share from Dongfeng Renault automative company (DRAC) to the Dongfeng automative company.
“Renault will continue to provide high quality aftersales service for its 3,00,000 customers through Renault dealers but also through Alliance synergies,” the company confirmed in a release.
The pandemic had deleterious impact on auto-mobile industries in China as well as the global market.As a result DRAC had to struggle with the sales. Despite of having a capacity to sale about 1,10,000 cars it could just sale 18,607 cars that results to loss of more than 1.5 billion Yuan (approximately Rs 1,625.16 crore) . (click here to check the impact of pandemic on India’s automobile industry)
In the first half of the year the China had lost its bearings in the market due to the pandemic. But Francois Provost, chairman for the China region of Groupe Renault, said: “We are opening a new chapter in China. 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.”
Successfully the firm had showcased its model City K-ZE EV at the auto expo 2020 along with the other models. Due to the lock-down the automobile companies are upgrading its models line-up in accordance to the guidelines of BS6 emission norms .
References -: Wiki-media and Autocar India