French car manufacturer Renault and its partner Nissan plan to join forces in China with the Dongfeng Motor Group on a joint project for the design and production of electric vehicles.
Car manufacturers are seeking to capitalize on the surge in demand for electric vehicles in the world’s largest car market, and the realization of plans has been further accelerated by the expected introduction of quotas on the share of electric vehicles in total sales starting next year.
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Beijing is expected to set new quotas for electric vehicles that will come into effect as early as next year, mandating that the share of electric and hybrid cars in the total sales of individual manufacturers must be at least eight percent, rising to 10 percent in 2019 and 12 percent in 2020.
Influenced by such expectations, Ford Motor reported this month that it is considering a joint investment with Chinese Anhui Zotye Automobile for the production of electric vehicles in China under a new brand.
Tesla, Daimler AG, and General Motors have previously announced plans to produce electric vehicles in China, where authorities want electric and hybrid cars to account for at least one-fifth of total car sales by 2025.
The joint venture between Renault-Nissan and their Chinese partner is called GT New Energy Automotive, with the French and Japanese companies each holding a 25 percent stake, while half will be owned by Dongfeng, according to a statement from Nissan and Renault on Tuesday.
