The Renault-Nissan Alliance and Dongfeng Motor Group Co., Ltd. have formed a joint venture to co-develop and sell electric vehicles in China, according to a company announcement.
The name of the new venture will be eGT New Energy Automotove Co., Ltd. Renault will hold 25% of the venture, Nissan will hold 25%, and Dongfeng will hold 50%, the announcement noted.
Through the venture, the companies will design a new EV with intelligent interconnectivity based on a cost-effective car design, according to the announcement, and will be developed on a Renault-Nissan Alliance A-segment SUV platform.
"The establishment of the new joint venture with Dongfeng confirms our common commitment to develop competitive electric vehicles for the Chinese market," said Carlos Ghosn, chairman and chief executive officer of the Renault-Nissan Alliance. "We are confident to meet the expectations of the Chinese customers and to strengthen our global electric vehicle leadership position."
The electric vehicle will be produced at the Donfeng plant of Shiyan, which has a capacity of 120,000 vehicles a year, according to the announcement. Production is expected to begin in 2019.
China is the largest battery electric market, according to the China Association of Automobile Manufacturers. In 2016, 256,879 electric vehicles were sold in China, a 121% year-over-year increase. And through the first seven months of this year, 204,000 electric vehicles have been sold, a 37.8% year-over-year improvement.