Published on July 18th, 2019 | by Daniel Sherman Fernandez0
Renault Partners China’s JMCG For Electric Vehicle Production
French automotive giant, Renault will increase its share capital by around 128.5 million euros (USD144.1 million) to become a major shareholder of JMEV, a subsidiary of JMCG. Renault’s stake in JMEV will increase to 50%.
This cooperation is part of the overall strategy of JMCG and Groupe Renault. Through this joint venture, Groupe Renault will be able to expand its influence in China’s electric vehicle market, while JMCG will be able to integrate and leverage more resources, which will promote its rapid growth in the future.
Francois Provost, senior vice president and chairman of the China region for Groupe Renault, described China as a key market for the firm. “This partnership in electric vehicle business with JMCG will support our growth plan in China and our EV capabilities,” Provost added.
JMCG is a well-known automotive manufacturer in China, achieving over 400,000 vehicle sales in 2018 and an annual turnover of over 100 billion yuan. In 2018, JMCG is ranked 88th among China’s top 500 manufacturing companies and 205th among China’s top 500 companies. The business scope of the group covers the development, manufacturing and sales of passenger vehicles, commercial vehicles and key vehicle components, as well as automobile imports and exports, automotive finance and other business sectors. In response to the wave of global automotive industry revolution, JMCG intends to seize this opportunity to grow its scale and competitiveness, and launched its new energy strategy in 2014, and then established JMEV in 2015. Today, new energy vehicle sales of JMCG is among the highest in the Chinese new energy vehicle market.