Renault has now officially become the main shareholder in JMEV, the electric car offshoot of the Chinese manufacturer Jiangling Motors Corporation Group. With the acquisition and joint venture, Renault intends to expand its influence on the Chinese electric vehicle market.
The Renault Groupe announced in December that they would establish a joint venture and acquire a significant stake in JMEV. Now, the Chinese EV startup JMEV just completed business license registration, and Renault has acquired a 50 per cent stake, thus becoming JMEV’s main shareholder. In return, Groupe Renault will increase its share capital by 1 billion yuan (around 128.5 million euros).
“China is a key market for Groupe Renault,” says Francois Provost, Chairman of Renault’s China Region. “This partnership in electric vehicle business with JMCG will support our growth plan in China and our EV capabilities”. Until just recently, European companies were not allowed to hold 50 per cent or more of a joint venture with a domestic group in China. Now the Chinese government has cleared the way for the French-Japanese Groupe to “capitalise on their experience in electric vehicle R&D, production, sales and services”.
JMEV was only founded in 2015 and quickly received approval as a manufacturer of battery electric cars. In research, development, logistics and production, JMEV has emancipated itself from Jiangling and, according to JMEV, “created a complete ecosystem for the value chain in research and development, production, supply and distribution”.
Jiangling Motors, in turn, is already a joint venture partner of Ford and announced a cooperation with the battery manufacturer CATL in the middle of last year.