BEIJING: France’s Renault said yesterday it will invest $145 million in a unit of China’s Jiangling Motors Corporation Group (JMCG) that will allow it to expand its electric vehicle manufacturing footprint in the world’s largest car market.
The French carmaker will take a 50 per cent stake in JMEV, an electric carmaker launched by JMCG in 2015, and establish it as a joint venture between the two companies, Renault said.
“This partnership in electric vehicle business with JMCG will support our growth plan in China and our EV capabilities,” said Francois Provost,China region chairman for Renault. “We will capitalise on our experience in EV R&D, production, sales and services.”
JMEV currently makes affordable EV sedans and sport utility vehicles and has an initial production capacity is 150,000 vehicles a year, according to its website.
Renault at present manufactures EVs in China through its joint venture with Dongfeng Motor. It also plans EV production through its venture with Brilliance Automotive.
JMCG, based in China’s southern city of Nanchang, also owns 50pc of Jiangling Holdings, which is Jiangling Motors Corporation’s (JMC) biggest shareholder. JMC is one of Ford’s joint ventures in China.
NEV sales rose 80pc in June to 152,000 vehicles, bringing January-June sales to 617,000, up almost 50% from a year ago, even as China’s overall auto market weakened.