Auto manufacturer Renault and the JMCG (Jiangling Motors Corporation Group) have formally established a joint venture for electric vehicles across China. In a statement, Renault asserted that the venture will look to “further endorse the growth” of China’s electric vehicle industry. Renault would surge its share capital by almost $144.1 Million (128.5 million euros) to become a top shareholder of JMEV, which is a subsidiary of JMCG. Apparently, Renault’s stake in JMEV would surge to 50%. Francois Provost—Senior VP and Chairman for Groupe Renault (China region)—described mainland China as an important market for the company. “This collaboration in electric vehicle business along with JMCG would aid our expansion plan in China and electric vehicle capabilities,” Provost added.
In 2018, worldwide the electric car sales strike 1.98 Million, as reported by the IEA (International Energy Agency), with the stock reaching to 5.12 Million globally. The IEA says that China’s electric car market is the largest on the planet, with the U.S. and Europe following behind. There were around 2.3 Million electric cars on China’s roads in the last year, as per to the IEA, signifying approximately 45% of the world’s total.
Recently, Renault was in news as its sales declined by 6.7% in the first half of 2019. French car manufacturer posted a 6.7% dropdown in first-half vehicle sales in the middle of a global auto slowdown but stated a forthcoming product unpleasant will start to help in softening the blow in important markets. From January–June, The sales crashed to 1.94 Million light vehicles from 2.08 Million a year earlier, the company reported in a statement. The slump was exceeded by a 7.1% market contraction globally, it added. The sales declaration came in the middle of gathering murk for the global auto industry, with top markets in dropdown and trade obstructions looming.