Renault and Dongfeng have opened their first joint venture plant in China, and the Kadjar is the first model.

DONGFENG RENAULT AUTOMOTIVE COMPANY OPENS ITS FIRST PLANT IN CHINA AND STARTS LOCAL PRODUCTION OF RENAULT’S LATEST SUV – THE RENAULT KADJAR

Just two years after the joint venture’s signature, and an initial investment of €870 million, the Renault brand is now ready to take a new dimension in China with a high quality standards plant in Wuhan and a product plan based on the fastest-growing segment.

The Wuhan operation includes a vehicle and powertrain plant together with an R&D centre. The initial production capacity of 150,000 vehicles per year has the potential to be doubled. The Renault Kadjar produced at Wuhan will go on sale in China in March and a second vehicle, a D-segment SUV, will enter production later in the year.

One year on for Renault and Dongfeng, and its nearly time to produce the first cars.

• One year after the joint venture agreement with Dongfeng was signed, construction of the Wuhan plant is well under way.
• To boost sales and prepare for future launches, the joint venture is now managing the sales teams of Renault China.
• Before the plant’s first vehicles are launched in 2016, the Renault network will begin selling the Captur next year. 

One year after the creation of Dongfeng Renault Automotive Company (DRAC), Renault’s joint venture with Dongfeng, the Group is on target to launch its first locally manufactured vehicle in China in 2016.

Work on the plant in Wuhan, capital of Hubei province, is moving forward according to schedule. Construction of the facility has been completed, and the assembly lines are currently being installed.

Several important milestones were achieved on the C segment crossover which will be the first vehicle to be manufactured at the plant. Renault engineering signed off responsibility to DRAC in April, and the first prototypes were manufactured and homologated this autumn.

“I would like to stress the commitment of our teams, both diverse and multicultural, over the course of this year. We made progress on all fronts involving production and sales, in terms of developing the range as well as our joint venture,” said DRAC CEO Jacques Daniel.

A high local content rate

The synergies offered by Dongfeng and Nissan, present in China for ten years running, have buoyed the project in terms of both the building of the plant and manufacturing, promising increased speed and lower costs. The Wuhan region boasts a particularly dense network of suppliers, resulting in a high local content rate from the outset. 

DRAC now oversees Renault China network teams

On July 1, DRAC took over management of the Renault Beijing Automotive Co. (RBAC) teams in charge of selling and marketing imported Renault vehicles in China. This change has stimulated the coordination of the country’s one hundred or so dealerships as they prepare for future launches. The Captur, which was presented at the Beijing Motor Show last April, will be sold in 2015.