Renault will manufacture industrial vehicles in China together with Brilliance

Growing in the Chinese market is something necessary for consolidated firms in the main world markets. Renault has been wanting to get into China for years, but the attempts it has made have only reported lukewarm results, both in sales and profits. Thanks to the Alliance that he has with Nissan, and now with Mitsubishi, they hope increase synergies to introduce their models in the country, but even so, they have not missed the opportunity to sign a collaboration agreement with a local manufacturer.

Brilliance is the chosen candidate, and the resulting company is called Renault-Brilliance-Jinbei Automotive. This new Joint Venture, mandatory by Chinese law if a foreign firm wants to operate in the country, will have its headquarters in the Chinese district of Dadong in Shenyang. Its industrial activity will focus on the manufacturing of industrial vehicles framed in the MPV, medium and heavy segments, since their demand increases exponentially every year.

According to Carlos Ghosn, President and CEO of the Renault Group, and the Renault-Nissan-Mitsubishi Alliance

"the Renault Group has been investing and expanding in China for four years with joint ventures focused on passenger cars, commercial vehicles and electric vehicles” […] “the Renault-Nissan-Mitsubishi Alliance gives us access to a wide range of technologies, with more than €50.000 billion in R&D investment over the next six years, part of which will enable the new joint venture to develop custom-designed products.”

Qi Yumin, Chairman of Brilliance, has stated that

“Brilliance and Groupe Renault come together to build a world-class model for the development of light commercial vehicles; it will change the map of the Chinese LCV market, and even globally”

The objective that the diamond firm and Brilliance have set for themselves is to reach sell up to 150 thousand units of these models in year 2022 . At the end of 2017, this market segment will close with sales of more than three million units, so they would be settling for a relatively small percentage of this important market.

Initially these models will be marketed under the brands Jinbei, Renault and Huasong. We will have to see if finally Nissan and Mitsubishi have access to this agreement, or if, on the contrary, they are left out to give prominence to the French firm.

Source – Renault