Business / Auto Global

Renault eyes bigger slice of Chinese market

By Hao Yan (chinadaily.com.cn) Updated: 2014-03-06 15:03

Jerome Stoll, executive vice-president, Renault S.A.S., said on Thursday that China is Renault's most important market, and Sino-French joint venture Dongfeng Renault will push for annual sales of 750,000 units in three steps after starting production in 2016. [Hao Yan/chinadaily.com.cn]

China is Renault's most important market, and Sino-French joint venture Dongfeng Renault will push for annual sales of 750,000 units in three steps after starting production in 2016.

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Jerome Stoll, executive vice-president, Renault S.A.S., said on Thursday that the company will sell 150,000 units in the first stage in 2016, and annual sales will climb to 350,000 in the second step, and then hit 600,000 in the third stage or even touch 750,000.

"Renault sold just over 34,000 vehicles to China last year, mostly imported from South Korean subsidiary Renault Samsung Motors - that's a tiny number given the market size," Economist Intelligence Unit's Managing Editor Ana Nicholls said in an email interview.

French carmaker currently offers only imported cars to the Chinese market and the sales volume are mainly contributed by crossover model?Koleos through 80 dealers in a niche market.

The 116-year old company has an overall global volume market share of three percent, so Stoll expects Chinese market to contribute at least equivalent performance.

Dealership networks will be expanded to 150 by 2016, according to Michael Van Der Sande, senior vice-president, marketing, Renault. And the dealers will sell both China-made and imported cars to meet varied customer preferences and demands.

Stoll said he sees small Chinese cities and even the rural areas as a very big market. As Dongfeng has a complete understanding of the market, it will develop the joint venture strategy.