The Renault Group announced on Tuesday (14) that it will stop sales of combustion-powered cars in China to focus on the market for electric cars and LCVs (vehicles in the N1 category, that is, that weigh up to 3.5 tons and are used to transport goods).
This change may be related to the recent reduction in the number of conventional car sales. In 2019, for example, the French automaker sold only 18,607 combustion-powered cars in the country, while its annual production capacity reached 110,000 vehicles.
As a result, Renault had a loss of more than US $ 212 million and needed to rethink its business strategy in the country. For comparison purposes, sales in the LCV segment totaled almost 162 thousand in the same year.
Unlike the original plan, the idea now is to focus on more ecological and profitable segments, such as electric cars and light commercial vehicles (LCVs). To this end, Renault has announced that it will make some corporate changes.
The automaker operates the light commercial vehicle segment through the joint venture (or “joint venture”) Renault Brilliance Jinbei Automotive (RBJAC) which, according to the statement, will remain unchanged. The electric car business will be managed by two other existing Renault joint ventures.
The conventional vehicle segment, on the other hand, will undergo some changes. Renault has announced it will transfer its shares from Dongfeng Renault Automotive Company (DRAC), a joint venture specializing in this automotive business, to Dongfeng Motor Corporation. After this transfer, DRAC will no longer use the Renault brand.
One of the most important news released in the statement is that the Renault City K-ZE (an electric Kwid), a fully electric urban car manufactured and sold in China since 2019, will be marketed globally – with an expected arrival in Europe in 2021.