Renault plans to stop making and selling gas powered cars in China
Renault has announced that it will stop making and selling gas powered cars in China. The French automaker will retain its interest in three different ventures to produce multiple electric vehicles.
Renault had launched K-ZE EV in china, this car is produced by eGT New Energy Automotive Co., the joint venture in which Nissan has 25% stake. Renault will also be developing four EVs with Jiangxi Jiangling Group Electric Vehicle (JMEV) and will retain 49% stake in a venture with Brillance Auto Group.
Francois Provost, Renault chairman for China operations, said “We are opening a new chapter in China. We will concentrate on electric vehicles and light commercial vehicles, the two main drivers for future clean mobility.”
The Renault K-ZE is manufactured in Shiyan, Hubei, which is currently available in China only but it has been confirmed that it will offer a version in Europe. The European variant is said to deliver more range and safety features and lost cost EV is set to arrive in 2021.
In the first quarter of 2020, the Chinese auto market fell 43% from a year earlier. Renault was already struggling with weak sales and never managed to become popular in China. Renault sold only 180,000 cars, both gas and electric, in China in 2019 – falling from 217,000 sales the previous year. The pandemic-related downturn forced the decision to eliminate its production of gas cars. Well with the new strategy Renault might get a competitive advantages as the world is looking forward to Eco-mobility.