The production of electric vehicles in China appears to be the next big thing for global automotive manufacturers. Nissan and its partner Renault announced that they signed a joint venture with Dongfeng Motor Group Co., Ltd. (Dongfeng) to develop and sell electric vehicles (EVs) in China.
The said joint venture, which is dubbed as eGT New Energy Automotive Co., Ltd. (eGT), will design a new Renault-Nissan based subcompact crossover EV for the Chinese market. Further details regarding this electric subcompact crossover are yet to be released by the company.
However, we do know that the EV will be produced at the Dongfeng plant in Shiyan, Hubei Province in central China. This facility has a production and sales capacity of 120,000 vehicles a year. The production of the new EV will be in 2019.
Renault and Nissan will each hold 25 percent of eGT with Dongfeng holding the remaining 50 percent.
Renault-Nissan joins the list of global automakers that intends to produce EVs in China. Just last week, we reported that Ford is looking to produce and develop a new line of all-electric passenger cars in China. The blue oval brand signed a Memorandum of Understanding (MoU) with Chinese company Anhui Zotye Automobile Co., Ltd. (Zotye Auto), which aims to establish a joint venture for the “development, production, marketing, and servicing” of new EVs in China.
Ford also consider China as the fastest-growing market for new energy vehicles (NEVs). The American automaker estimates that NEVs in China will grow to 6 million units per year by 2025 and approximately 4 million of which will be all-electric vehicles.