In a major milestone for the Renault-Nissan Alliance, Renault and Dongfeng Motor today signed a contract for the creation of a joint venture company in China, the largest auto market in the world. The two companies will invest 7.76 billion CNY (€870 million) in the 50-50 joint venture: Dongfeng Renault Automotive Company.
The joint venture will establish a manufacturing plant in Wuhan with production capacity of 150,000 vehicles per year, with potential to double that figure in the future. Sales will begin in 2016.
Dongfeng has been Nissan's joint venture partner in China since 2003. Thanks to this partnership, Nissan is today the largest Japanese automaker in China, with more than 1.2 million vehicles sold in 2012.
China is the Renault-Nissan Alliance's biggest market globally. Together, Renault (which currently imports vehicles into the market) and Nissan had a 6.6% share of the market in 2012.