Business

China in $1.3bn Renault-Dongfeng auto joint venture

  • 5 December 2013
  • From the section Business
Dongfeng electric car on display
Image caption An electric car made by China's Dongfeng motor group on display in Shanghai

China has approved a joint venture worth some 7.76 billion yuan ($1.27bn; £778m) between its second-largest car maker, Dongfeng Motor Group, and French car manufacturer, Renault.

The new venture plans to build 150,000 vehicles and engines a year.

China is the largest car market in the world and Renault is one of the few big car makers that does not yet have a facility there.

The 50-50 joint venture will be called Dongfeng Renault Automotive Co Ltd.

Dongfeng is state-owned and has existing partnerships with Honda and Nissan, amongst others.

Renault's joint venture with the Chinese giant will see it enter a crowded marketplace filled with competitive local brands.

While car sales in Western countries have been waning, Chinese sales have been growing.

Official figures showed vehicle sales rising by 4.3% in 2012 to 19.3m.

Under Chinese trade laws, foreign carmakers looking to launch manufacturing operations in China must have a local partner.

Approval was granted for the new venture between Renault and Dongfeng by China's National Development and Reform Commission.

More on this story

Related Internet links

The BBC is not responsible for the content of external Internet sites