Renault and JMCG establish joint venture for electric vehicles in China
Groupe Renault and Jiangling Motors Corporation Group (JMCG) announced the official establishment of their joint venture to further promote the development of the electric vehicle (EV) industry in China, following an initial agreement in December 2018. Groupe Renault will increase its share capital by RMB1 billion (USD145 million) to become a major shareholder of JMEV with a 50% stake. JMEV has already completed business license registration.
This cooperation is part of the overall strategy of JMCG and Groupe Renault. Through this joint venture, Groupe Renault plans to expand its influence in China’s electric vehicle market, while JMCG seeks to integrate and leverage more resources in order to promote its rapid growth in the future.
“China is a key market for Groupe Renault. This partnership in electric vehicle business with JMCG will support our growth plan in China and our EV capabilities. As a pioneer and leader in the European EV market since 10 years, we will capitalize on our experience in EV R&D, production, sales and services,” said Francois Provost, senior vice president, and chairman of China Region, Groupe Renault.
Established in 2015, JMEV is a subsidiary of the JMCG. Once created, JMEV quickly obtained the certification to manufacture battery-electric passenger vehicles and made rapid breakthroughs in building up its research capability, supply chain, production capacity and market deployment, forming a full value-chain operation ecosystem in R&D, production, supply and sales for complete vehicle and critical components. JMEV will continuously complete its deployment in EV and connectivity technologies and strive to build a full range of new vehicles to support the EVEASY Brand.
Groupe Renault is an international multi-brand group, selling close to 3.9 million vehicles in 134 countries in 2018, with 36 manufacturing sites, 12,700 points of sales and employing more than 180,000 people. To address the major technological challenges of the future, while continuing to pursue its profitable growth strategy, Groupe Renault is focusing on international expansion. To this end, it is drawing on the synergies of its five brands (Renault, Dacia, Renault Samsung Motors, Alpine and LADA), electric vehicles, and its unique alliance with Nissan and Mitsubishi Motors.
JMCG is a well-known automotive manufacturer in China, with more than 400,000 vehicle sales in 2018. Ranked 88th among China’s top 500 manufacturing companies and 205th among China’s top 500 companies, the business scope of the group covers the development, manufacturing, and sales of passenger vehicles, commercial vehicles, and key vehicle components, as well as automobile imports and exports, automotive finance and other business sectors. In response to the wave of global automotive industry revolution, JMCG intends to seize this opportunity to grow its scale and competitiveness, and launched its new energy strategy in 2014, and then established JMEV in 2015. Today, new energy vehicle sales of JMCG is among the highest in the Chinese new energy vehicle market.