Dongfeng-Renault eyes 400,000 annual sales in China

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Chinese automaker Dongfeng Motor and its French partner Renault have announced an ambitious plan to raise their joint venture’s annual sales from the current target of 70,000 units to 400,000 units by 2022, displaying confidence as China continues to stress its commitment to sustainable development and open markets.

Dongfeng Renault Automotive Company (DRAC) will aim to sell 400,000 vehicles based on nine localized models, mainly SUVs, according to a blueprint unveiled at its plant in Wuhan, central China’s Hubei Province, on Tuesday.

The announcement came days after the Chinese ruling party’s national congress wrapped up with senior officials reiterating their commitment to high-quality economic growth and opening up.

“China’s 19th Party Congress said China will significantly ease market access, so overseas competitors are paying more attention to China,” Li Shaozhu, general manager of Dongfeng Motor, told CGTN after the briefing, noting that there will be more opportunities as well as competition in this environment.

Li Shaozhu, general manager of Dongfeng Motor, speaks at the media briefing in Wuhan. /DRAC Photo

Carlos Ghosn, chairman and CEO of Renault Group, the second-largest automaker in Europe, said he was optimistic about the prospect of the world’s largest auto market.

Carlos Ghosn, chairman and CEO of Renault Group, speaks at the media briefing in Wuhan. /DRAC Photo

“The fact that China is shifting from a high level of growth to a more sustainable growth is appreciated by business. We are happy because this will encourage us to make investments in a way where there is less risk,” he said.

The new sales target may bring further investment.

The DRAC’s Wuhan plant, which went into production in 2015, is capable of producing 150,000 units per year.

Therefore, with the 2022 vision to be implemented, "we believe a second plant will be planned," DRAC executive vice president Weng Yunzhong said at the media briefing.

The automaker also announced that the nine models to be produced in China will include three electric vehicles.

As a frontrunner in developing green transportation, China is studying the possibility of phasing out fossil fuel vehicles.

“We are heavily investing in the electric car. So I can tell you we applaud the initiatives to make electric cars a much bigger component of the car industry. We are going to sustain that and support this initiative by bringing a lot of new electric cars to the Chinese market,” Ghosn told CGTN.

DRAC will develop electric vehicles tailored for the Chinese market, harnessing the resources of the Renault-Nissan-Mitsubishi Alliance, a strategic partnership of the three global automakers, according to Francois Provost, CEO of DRAC.