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Renault Group officially announced on July 17th that it established Jiangling Group New Energy Automobile Company with Jiangling Motor by increasing capital by 1 billion yuan, and owns 50% of the company. At present, the new company has completed industrial and commercial registration. People in the industry said that Renault is currently in a difficult situation in China under the pressure of the failure of fuel vehicles and double points, but the joint venture with Jiangling will ease Renault's position in the Chinese market. promote the strategic layout of both sides in China's new energy market.

Jiangling New Energy, a subsidiary of Jiangling Group established in 2015, is the third car company with pure electric passenger car production qualification approved by the Ministry of Industry and Information Technology. According to industrial and commercial information, Jiangling New Energy has undergone a number of industrial and commercial changes on July 16. the company's registered capital has been changed from 631 million yuan to 2 billion yuan, with a new investor RENAULTs.a.s (Renault Simplification Co., Ltd.). The latest shareholding structure is RENAULTs.a.s holding 50%, Jiangling Automobile Group Co., Ltd. 37% and China Agricultural Development key Construction Fund Co., Ltd. 13%.

Jiangling New Energy is already Renault's fourth joint venture in China, with the other three being Dongfeng Renault, Huachen Renault and easyit. Since China liberalized the restrictions on the number of foreign-funded new electric vehicle joint ventures in China in 2017 and the introduction of the double points policy, the boom of electric vehicle joint ventures began to appear. Easy Jet, a joint venture between Renault, Dongfeng and Nissan, and Jiangling New Energy were born in this context.

At present, Renault Group's performance in the passenger car market is not satisfactory. According to statistics, although Renault's total sales in China reached 220000 in 2018, Dongfeng Renault, which focuses on the passenger car business, sold only about 50, 000 vehicles, down about 30% from the same period last year.

In 2019, Dongfeng Renault's sales are still on the decline. Data show that Dongfeng Renault sold only 1503 vehicles in June, down 67.21 per cent from a year earlier, while Dongfeng Renault sold only 8901 vehicles in the first half, down 75.97 per cent from a year earlier.

In fact, in addition to sluggish sales, Renault faces policy pressure in China. The average fuel consumption of Chinese passenger car enterprises and the scores of new energy vehicles released by the Ministry of Industry and Information Technology in 2018 show that the average fuel consumption scores of Renault's three enterprises are all negative, and the new energy scores of the three enterprises are all zero.

For Renault, Jiangling New Energy, which has mature production and marketing capacity, is undoubtedly to deal with the challenge of double points policy. According to reports, Jiangling New Energy has a number of pure electric vehicle products, including Yizhi EV3 and E400, and the company has a production base with an annual production capacity of 50, 000 new cars, with a planned annual production capacity of 300000 vehicles, which is expected to be put into use in 2019.

However, despite its late layout in China, Renault is not without technology accumulation in the new energy sector. In the first half of 2019, Renault sold more than 30, 000 electric vehicles worldwide, up 42.9% from a year earlier, of which 25000 ZOE models were sold in Europe, while Kangoo?Z.E. 4653 models are sold in the European market.

According to Renault's strategic plan of "harnessing the Future" released in 2017, Renault will launch 20 new energy vehicles, including 8 pure electric vehicles and 12 hybrids. At the same time, Dongfeng Renault plans to launch three pure electric cars by 2022. In addition, the K-ZE, Renault's first pure electric car introduced to the Chinese market, will be produced in Egett this year and sold in Dongfeng Renault channel.

Industry insiders said that compared with Volkswagen, Toyota and Honda, Renault's new energy development in China is obviously half a beat slow, although Renault relieves the pressure caused by double points by dealing with joint ventures this time, however, the communication between Jiangling New Energy shareholders and Renault's four joint ventures will become factors affecting the success or failure of Renault's new energy development.

Renault head said that its four joint ventures have their own focus, to a certain extent, are not related to each other. However, as the joint venture has just been established, many things are still being discussed at the top of the two sides, so it is still unknown what the future layout of new energy will be.

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