Renault's revised China strategy drops combustion engines

April 16, 2020
Owning the Energy Transition More...
by Christopher Robinson
Very important

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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