The new joint venture, to be know as eGT New Energy Automotive aims to harness the electric vehicle knowledge in the Renault–Nissan Alliance, creators of the market leading Nissan LEAF and Renault ZOE, as well as the resources of Dongfeng in the new energy industry and it’s access to the competitive manufacturing costs in China.
eGT will design a new EV that will be in line with the expectations of Chinese customers. It will be jointly developed by the Alliance and Dongfeng on an SUV platform borrowed from the Renault-Nissan Alliance with production to start in 2019.
Carlos Ghosn, chairman and chief executive officer of the Renault-Nissan Alliance commented:
“The establishment of the new joint venture with Dongfeng confirms our common commitment to develop competitive electric vehicles for the Chinese market. We are confident to meet the expectations of the Chinese customers and to strengthen our global electric vehicle leadership position.
This project is the result of a joint effort to develop electric vehicles for the Chinese market, by the ‘Golden Triangle’ formed by Dongfeng, Renault and Nissan, with an innovative business model,” said Zhu Yanfeng, Chairman of Dongfeng. “We expect to meet the transformation trend of the market in China; where cars are becoming light, electric, intelligent, interconnected and shared. This is also testimony of a deepened and strengthened strategic cooperation between the three parties.”
The new business will be based in the City of Shiyan, Hubei Province in central China with Renault holding 25 percent of eGT, Nissan a further 25 percent and Dongfeng the remaining 50 per cent. The new electric vehicle will be produced at the Dongfeng plant of Shiyan which has a production and sales capacity of 120,000 vehicles a year.
According to the China Association of automobile manufacturers, China is the world’s largest pure electric car market. In 2016, 256 879 pure EVs were sold in China, up 121 percent from the previous year. In the first seven months of 2017, production of pure EVs reached 223,000 units and sales 204,000 units, representing an increase of 37.8 per cent and 33.6 per cent respectively. The new move aims to tap the potential of the fast-growing Chinese segment of the market.