NEWS COMMENTARY

Renault's revised China strategy drops combustion engines

Published:
April 16, 2020
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Strategy
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Renault's China strategy was shaped mostly by financial performance, as its joint venture with Dongfeng had reportedly lost more than $200 million in 2019 alone. That venture focused on combustion vehicles, and Renault's revised strategy in China saw it keep its electric vehicle joint venture with Jiangling Motors – likely influenced by the fact that more than half the world's battery electric vehicles (BEV) were sold in the country. Clients should recognize that other automakers with struggling joint ventures – such as Dongfeng Peugeot Citroën and Changan Ford, which both face overcapacity – could adopt a similar strategy focused on BEVs in part due to financial pressure from COVID-19.

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