WUHAN – Dongfeng Renault Automotive Co., Ltd. (DRAC) plans to increase annual vehicle sales to 400,000 units by 2022, expand product mix to nine locally-produced models centered on SUVs including three electric vehicles and double dealer network to 400 with the best level in quality and customer satisfaction, according to the DRAC Vision 2022 Strategy announced on October 31 by the joint venture between Dongfeng Motor Group and Groupe Renault.
The announcement builds on Groupe Renault’s “Drive the Future” new mid-term plan announced on October 6 that seeks to expand China sales by more than 15-fold to 550,000 units by 2022.
“We recognize China as the world’s largest auto market and as a global trendsetter in the mobility of the future and that is why we have made it a strategic priority for growth in Groupe Renault’s new mid-term plan, ‘Drive the Future.’ Together with Dongfeng Group, we have the resources, scale and technologies to support DRAC’s sustainable growth in the Chinese market,” said Carlos Ghosn, chairman and CEO of Groupe Renault, at a media briefing.
“Built on a strong understanding of market trends and a commitment to fulfilling customer hopes of enjoying a great life, the Vision 2022 plan reflects the shareholders’ confidence in DRAC, as well as the company’s responsibility to the shareholders, the dealers, all stakeholders and to society as a whole,” said Li Shaozhu, president and deputy Party secretary of Dongfeng Motor. “We will fully leverage the synergies of our Golden Triangle among Dongfeng, Renault and Nissan to help DRAC begin a new chapter of innovative development.”
DRAC’s next stage of development will focus on four pillars: brand and product development, sales and marketing enhancement, quality assurance and expansion of its Chinese footprint. It will continue to develop products focused on the Chinese market and deliver 90 percent localization. Meanwhile, DRAC will continue to improve its R&D capacity – including in EV and connectivity – tap the local talent pool, and build its Wuhan Plant into one of the best within the Renault-Nissan-Mitsubishi Alliance. In addition, the Golden Triangle partnership among Dongfeng, Nissan and Renault will further unleash DRAC’s potential with access to a full spectrum of cutting-edge technologies.
“Over the past 4 years, DRAC has become a full value chain company with an encouraging start thanks to the passion of our 2,500 employees and the support of our dealers and suppliers,” said François Provost, senior vice president and chairman of Asia-Pacific Operations for Groupe Renault and CEO of DRAC. “With our 2022 Vision, we will deliver sustainable growth based on the uniqueness of our Renault Brand with a focus on SUVs and battery electric vehicles.”
DRAC, less than four years after its official establishment in December 2013, has become one of the fastest growing vehicle JVs in China. Sales of the Kadjar and all-new Koleos had exceeded 60,000 units by the end of October, achieving the annual target two months early.
Last year, Renault sold 36,525 vehicles, mostly produced by the DRAC JV, up 50.8 percent year-on-year.