Renault announced today that it is taking a “significant stake'” in Chinese electric vehicle company JMEV.
François Provost, Chairman of Asia Pacific Region and SVP of China Operations for Groupe Renault, said the following about the announcement:
“JMEV, the future joint venture with JMCG is fully in line with Groupe Renault’s strategy, aimed at establishing a solid position in the growing and high-potential market of EV in China. JMEV is an important local actor. This project is also very complementary with Groupe Renault other activities in China.”
Wan Jianrong, General manager of JMCG, added:
“Groupe Renault is a globally renowned automaker with leading electric vehicle business in Europe. JMEV’s cooperation with Groupe Renault therefore, will promote its future development that fits JMCG’s strategy.
JMEV, which has produced and sold 38,000 electric cars last year, will become a joint-venture between Renault and China’s JMCG if the deal is approved by regulatory authorities next year.
The company produces cheap all-electric vehicles with relatively short to mid-range battery packs and lower power drive trains.
That’s another move influenced by China’s aggressive zero-emission mandate, which forces automakers to have zero-emission vehicles (ZEVs) represent 10% of new car sales as soon as 2019 and 12% by 2020.
By buying into this EV company, Renault is boosting its mix of EV sales in the country, which it needs very badly and quickly since Renault aims for its overall sales to grow to 400,000 vehicles per year in China.
It means that the French automaker needs over 40,000 of those vehicles to be electric.
The company has also previously announced that it will launch 3 new electric vehicles in the Chinese market and the Nissan-Renault alliance also created a separate new joint-venture to produce electric vehicles in China.
Several other automakers have made similar announcements in recent years due to the ZEV mandate starting next year.