In china, Renault is seen to have plans of producing SUVs. The company will not be producing the car on its own, it will do so in association with Dongfeng. The production of the cars will take place at the joint facility of the companies, which is in Wuhan. The facility is situated quite centrally in the city.
Both the companies could only move forward once it has been approved by the Chinese government. Thankfully the approval was received last month and the companies are now working on a way to find a balance between the technology and the cost which they refer to as the “golden triangle.” The partnership that has been entered into by the two companies will be a 50-50 one, for which the companies will be investing a total of Rs.8025 crores in the assembly plant. The plant will have a 1,50,000 unit production capacity and will also produce similar quantities of engines. In China it is generally seen that car makers enter into a joint venture. The Japanese carmaker, Nissan, is said to be associated with Dongfeng for over a decade now and the company has delivered over one million units in China.
In order to price the new car competitively, Renault will be importing CBU units. Although Renault is planning to sell a range of cars in China, currently the license is only for making SUVs. At the moment, China has the biggest market for the car manufacturers, and this opportunity should help Renault go a long way in future.
