FILE PHOTO: The logo of French car manufacturer Renault is seen at a dealership of the company in Illkirch-Graffenstaden near Strasbourg, France, June 12, 2019. REUTERS/Vincent Kessler/File Photo
PARIS (Reuters) – Renault (RENA.PA) has formed a joint venture partnership with Jiangling Motors Corporation Group (JMCG) to target the Chinese electric vehicles (EV) market, in a deal which will also see Renault take a 50% stake in the new venture.
Renault said it would increase its share capital by around 1 billion Chinese RMB, or roughly 128.5 million euros ($144 million), to acquire its 50% stake in the new venture.
“China is a key market for Groupe Renault. This partnership in electric vehicle business with JMCG will support our growth plan in China and our EV capabilities,” said Francois Provost, Senior Vice President and Chairman of China region for Renault.
“As a pioneer and leader in the European EV market for since 10 years, we will capitalize on our experience in EV R&D, production, sales and services,” added Provost.
Reporting by Sudip Kar-Gupta; Editing by Bate Felix