Dongfeng Renault (DRAC) aims to boost Chinese sales to 400,000 vehicles by 2022 and increase its dealer network to more than 400 outlets to support the expansion.
Detailing its new 5-year plan at a media briefing at its headquarters in Wuhan, China, the joint venture between automakers Dongfeng of Korea and Renault of France says the growth will be based on nine local models, including three electric vehicles, with a focus on the SUV segment.
“Through this quality expansion of its network, Renault will be a brand that is truly visible, recognizable and accessible throughout China,” a company statement says.
“DRAC has achieved its initial goals over the past four years and now is ready to begin a new journey for the next five years – opening a new chapter as a mainstream joint venture by leveraging a full value-chain system.”
The JV says it will continue developing products focused on the Chinese market and deliver 90% localization. It will boost its R&D capacity – including in EVs and connectivity – while tapping the local talent pool and making its Wuhan plant one of the best in the Renault-Nissan-Mitsubishi Alliance.
“We recognize China as the world’s largest auto market and as a global trendsetter in the mobility of the future, and that is why we have made it a strategic priority for growth in Groupe Renault’s new midterm plan,” Groupe Renault Chairman and CEO Carlos Ghosn tells the media briefing.
“Together with Dongfeng Group, we have the resources, scale and technologies to support DRAC’s sustainable growth in the Chinese market.”
Dongfeng General Manager Li Shaozhu says DRAC is entering a new stage of development that will focus on four pillars: brand and product development, sales and marketing enhancement, quality assurance and expansion of its Chinese footprint.
He says the company will stay focused on SUV expansion with improved internal-combustion-engine options and will apply Renault’s advanced technology in EVs, autonomous driving and connectivity “to satisfy tech-savvy Chinese consumers, particularly the younger generation.”
Through this expansion of its network, the JV says, Renault will be a brand that is visible, recognizable and accessible throughout China.
The Golden Triangle partnership among Dongfeng, Nissan and Groupe Renault, it says, will further unleash DRAC’s potential with access to a full range of cutting-edge technologies.
François Provost, senior vice president and chairman of Asia-Pacific Operations for Groupe Renault and CEO of DRAC, says that over the past four years, DRAC has become a full-value chain company off to an encouraging start.
“With our 2022 Vision, we will deliver sustainable growth based on the uniqueness of our Renault Brand with a focus on SUVs and battery-electric vehicles,” he says.
DRAC says it has quickly matured into a full-fledged JV employing more than 2,500 people.
“In less than two years, DRAC has built a factory in Wuhan from the ground up and successfully localized two key models, Kadjar and all-new Koleos,” the statement says. “By the end of October 2017, sales of the local Kadjar and Koleos exceeded 60,000, achieving the annual target two months in advance.”
